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1937-38b 



. 



CENSUS SURVEY OF BUSINESS: 1937*38 



WHOLESALE- DISTRIBUTION 



[SPECIAL TRADE REPORTS! 






// Ai a 



J?FFFRFr;r;F fflPY 









UNITED STATES DEPARTMENT OF COMMERCE 

Daniel C. Roper, Secretary 




BUREAU OF THE CENSUS 

William L. Austin. Director 



ft 

3<x >7 



5/ 






CENSUS SURVEY OF BUSINESS: 1937-38 



WHOLESALE DISTRIBUTION 



BEER & OTHER FERMENTED MALT LIQUORS 



BOREAUimrCENSUS 
LIBRARY 




DECEMBER, 1938 






J 



CENSUS SURVEY OF BUSINESS: 1937-38 
Wholesale Distribution 



BEER AND OTHER FERMENTED MALT LIQUORS 



This is one of a series of final reports presenting the findings of the Census Survey of Busi- 
ness for the year 1937 and the first half of 1938. Contained herein are dollar sales of 531 identical 
establishments — 464 service and limited -function wholesalers and 67 manufacturers' sales branches — 
for the years 1935, 1936, 1937 and the first half of 1938; pay roll for the years 1935 and 1937; and the 
value of stocks on hand at the end of the years 1935, 1936 and 1937. Sales for the year 1937 and the 
first half of 1938 are shown by quarters. As added features, changes in the size of business, 1935 to 
1937, are shown; establishments are classified according to their usual terms of sale; and sales for the 
year 1937 are analyzed to show cash and credit business separately. 

This Survey, unlike regular Censuses of Business, is not intended to present a complete picture 
of the beer trade, but rather to provide a reliable indicator of trends since the last Census. It was 
conducted by mail from lists made up only of establishments included in the 1935 Census, all new ones 
since 1935 being omitted. Those with sales of less than $25,000 for the year were likewise omitted, as 
they account for but a negligible portion of the total business. Reporting was purely on a voluntary 
basis with only one reminder follow up; hence, not all wholesalers contacted submitted returns. This ' 
report, in order to provide reliable trend information, is further limited to those establishments en- 
gaged primarily in selling beer and other fermented malt liquors at wholesale during the year 1935 and 
which still operate in a similar manner. 

Three Regular Censuses 



Three regular Censuses of Business have been taken covering the years 1929, 1933 and 1935, 
respectively. Below is a comparison of the number and sales of service and limited-function wholesalers 
and manufacturers' sales branches engaged primarily in selling beer and other fermented malt liquors. 
Mo data are shown for 1929, a prohibition year. 



Service and Limited- 
Function Wholesalers 



Manufacturers' Sales 
Branches 



Period 



Number of 
e s t abl i shment s 



Net Sales 



Number of 
e st ab 1 i shment s 



Net Sales 



1929 Census 
1933 Census 
1935 Census 

Percent change 
1933 to 1935 



Prohibition Era 
2,193 $ 90,493,000 
4,016 281,259,000 



+83.1 



+210.8 



Prohibition Era 
93 #37,141,000 
261 68,275,000 



+180.6 



+83.8 



Identical establishments in this Survey: 

1935 464 #57,745,000 

1936 464 78,142,000 

1937 464 88,483,000 

Percent change, identical establishments 

1935 to 1937 +53.2 



67 


#40,787,000 


67 


52,396,000 


67 


59,038,000 



+44.7 



430 Million Dollars For Service And Limited-Function Wholesalers 



If the 53.2 percent increase in 1937 over 1935, as found in this Survey, is considered repre- 
sentative for the trade, the total business of all service and limited-function wholesalers engaged pri- 
marily in selling beer and other fermented malt liquors exceeded 430 million dollars in 1937. Likewise, 
if the 44.7 percent increase is representative, the total for all manufacturers' sales branches approxi- 
mated 98 million dollars. 



Page 2 



Pay Roll And Inventories Increased More Than Sales 

It is interesting to note that between 1935 and 1937 pay roll and end of year inventories of 
service and limited-function wholesalers show a larger relative increase than annual sales; 57.0 percent 
for pay roll and 78.0 percent for inventories as compared with 53.2 percent for net sales. The 67 manu- 
facturers' sales branches on the other hand show a 44.7 percent increase in business as compared with a 
17.7 percent rise in pay roll and 33.9 percent for inventories. 



Type of Operation 



Percent increase, 1937 over 1935 

Stocks 
Net sales Pay roll (end of year) 



Service and limited-function 
wholesalers (464 establishments) 
Manufacturers' sales branches 
(67 establishments) 



53.2 
44.7 



57.0 
17.7 



78.0 
33.9 



Quarterly Sales, 1937 and First Half of 1938 

A measure of the short-term trend in the beer and other fermented malt liquors trade is given 
in terms of quarterly sales of all establishments included in this Survey, for the year 1937 and the 
first half of 1938. Quarterly sales by geographic divisions are shown in Table 1. The summary for the 
United States follows: 



464 Service and Limited- 
Function Wholesalers 



67 Manufacturers' 
Sales Branches 



Period 



1st Qr. 1937 
2nd Qr. 1937 
3rd Qr. 1937 
4th Qr. 1937 



Net sales 

$16,017,000 
23,874,000 
28,425,000 
20,167,000 



fo change from 
preceding quarter 



+49.1 
+19.1 
-29.1 



Net sales 

$10,355,000 
16,871,000 
19,111,000 
12,701,000 



% change from 
preceding quarter 



+62.9 
+13.3 
-33.5 



1st Qr. 1938 
2nd Qr. 1938 



16,091,000 
22,049,000 



-20.2 
^37 



10,887,000 
15,255,000 



-14, 
+40, 



1st Qr. 1938 vs. 1st Qr. 1937 
2nd Qr. 1938 vs. 2nd Qr. 1937 



+ 0.5 
- 7.6 



Percent Change 



Percent Sample 

The 464 service and limited-function wholesalers included herein represented 12 percent of the 
total number and accounted for 21 percent of the sales of all merchant wholesalers in 1935, while the 
67 manufacturers' sales branches represented 26 percent of the number and accounted for 60 percent of the 
sales of all sales branches for that year. 



Table 3, attached, measures the size of the sample included in this Survey in terms of the 1935 
Census. In this table the number of those included, together with their 1935 sales and pay roll is com- 
pared by geographic divisions with the totals in 1935. For convenience in using the information, the per- 
cent sample of establishments and sales is reproduced in Tables 1 and 2. 

Table 2 presents comparable information by geographic divisions as to sales and inventories of 
the 464 service and limited -function wholesalers and the 67 manufacturers' sales branches for the years 
1935, 1936 and 1937, and on pay roll for the years 1935 and 1937. 



Page 3 



SIZE OF ESTABLISHMENT 



Of the 464 service and limited-function wholesalers included in this Survey, 367 are classi- 
fied as wholesale merchants, 2 as importers and 95 as wagon distributors. The 367 wholesale merchants 
are arranged according to their 1935 size in Table A, below, where their number and sales are compared 
by size classification with all wholesale merchants for that year. As might be expected, a greater 
percentage of the larger establishments than the smaller ones reported for this Survey. Eleven of the 
37 (30£) in the $500, 000-and -over bracket and 47 of the 194 (24$) in the $200,000 - $499,999 group are 
included as compared with only 104 of the 1,333 (8$) in the under $50,000 bracket. The percent sample 
of sales is also highest in the upper bracket and decreases with size. 

TABLE A. -SAMPLE BY SIZE OF ESTABLISHMENT-WHOLESALE MERCHANTS ONLY 



Size of establishment 


Number of 
establishments 


Net sales-1935 


Percent Sample 


(Net sales in 1935) 


1935 
Census 


1937-38 
Survey 


1935 
Census 


1937-38 
Survey 


Estab- 
lishments 


Net 
sales 


Total 


2,595 

37 

194 

390 

641 

1,333 


367 

11 

47 

91 

114 

104 


$217,218,000 


$49,251,000 

9,685,000 

14,445,000 

13,074,000 

8,130,000 

3,917,000 


14 
30 
24 
23 
18 
8 


23 


$500,000 and over 
$200,000 - $499,999 
$100,000 - $199,999 
$ 50,000 - $ 99,999 
Under $50,000 


29,093,000 
57,450,000 
53,515,000 
45,549,000 
31,611,000 


45 
25 
24 
18 
12 



Increases by Size, 1937 over 1935 

It is interesting to note that the smaller establishments, those under $200,000, show a great- 
er increase in business than the larger ones. For example, sales of the 104 houses in the under-$50,000 
group increased 76.8 percent, and the business of the li4 in the $50,000 - $99,999 bracket rose 69.5 
percent as compared with only 38.9 percent for the $200,000 - $499,999 group and 47.3 percent for the 11 
houses in the $500, 000-and -over bracket. The smaller establishments also show more than average in- 
creases in inventories. 



TABLE B. -INCREASES IN SALES, PAY ROLL AND STOCKS, 1937 OVER 1935, 
BY SIZE OF ESTABLISHMENT 





Number of 


Percent 


increase, 1937 over 1935 


Size of establishment 






Stocks 


(Net sales in 1935) 


establishments 


Sales 


Pay roll 


(end of year) 


Total 


367 


54.7 


56.9 


80.4 


$500,000 and over 


11 


47.3 


59.9 


91.1 


$200,000 - $499,999 


47 


38.9 


53.2 


40.7 


$100,000 - $199,999 


91 


61.6 


53.0 


93.3 


$ 50,000 - $ 99,999 


114 


69.5 


70.2 


94.3 


Under $50,000 


104 


76.8 


45.9 


140.7 



Change of establishments from one size group to another, 1935 to 1937, is shown in Table C. 
In keeping with the general increase in sales, the trend was from the lower to the upper brackets. 
For example, 28 establishments were in the $500,000-and-over group in 1937 as compared with only 11 in 
1935. On the other hand, 104 of the 367 merchants were in the under $50,000 group in 1935 as compared 
with only 51 in 1937. A total of 190 establishments moved up in size bracket while only 25 dropped to 
lower groups. 



TABLE C. -NUMBER OF ESTABLISHMENTS BY SIZE CLASSIFICATION; 1935 AND 1937 







$500,000 


$200,000 


$100,000 


$50,000 


Under 
$50,000 
in 


Size of establishment 
(based on net sales) 


Total 
establishments 
1935 


and 

over 

in 


to 

$499,999 

in 


to 

$199,999 

in 


to 
$99,999 
in 






1937 


1937 


1937 


1937 


1937 


Total establishments, 1937 


367 


28 


88 


100 


100 


51 


$500,000 and over 


11 


9 


2 








$200,000 - $499,999 


47 


15 


28 


4 






$100,000 - $199,999 


91 


4 


42 


37 


7 


1 


$ 50,000 - $ 99,999 


114 




13 


51 


39 


11 


Under $50,000 


104 




3 


8 


54 


39 



P»*e < 



TERMS OF SALE 



Tie Screen af the rersas ::lle:rer iaf :ir_e.r:.;r ir rare Surrey for rre first tins : isual 

of sale. Each ::::r:i::i; est aoli sine-" as asked fee report its usual credit period and its 
,.. g _ — c _- :;5 ii scour.* rate, if any. Ir. airrrior., sales for the year 1957 were to be analyzed te era. 
spot :rs_ "r.s.ress credit sale; 1C 1175 :r less: and credit :: r\rre r'aer 1C lays. Kcuses slanting 

iis::^:":s far early ra~ent of :iar sales ire aslei re rererr rae rer:errr~e of their :reiir se_les 
iiscounter la If"". Tre results :f raese :a;_rries ere rresearec in l"a':les 1 ana I. .":" all reuses 
ere sale r: suraly ere info— - c tic~ , reuoe, rae auu'rer of esrailisrurear s ir rlese ra.les is lees than 



le.le I classifies iSS ser~ ice aaa lirriaei-f _.: : : :r a:lesalers aaa z~ -- — r srs sales 

branches e:::riiar r: _s_al :reiir periods ari cash liscoont r;:;s, Ir srralr "re noted that tre :lassi- 
Cication as ri~er aere rerreserrs "re ~rlrr~ ri rre ~u_ses frcar "rizlr rraorioe na~ "rar"u A Terrer" of 
:re»iit periods arrear ir rre r:lesale :eer rrrie itr r: rartioular :re rreicruaar mr . Thirty days is 

rre rest fretuert rerrri rer:rrei ::rr for service aaa larriter-furrrior "-.hrlesalers aar for ~'~'~-'~ ---- = 
sales rranohes rlrur_rh :rerrr eareaarca of sever rays, IT lays, or It lays is :_rre oorrror. >fery •sch:le- 
sale ests:lrsh~enrs rsu-y their :reiit rerioi aooorainr t: rre oustorrer :r —_rh rre Irae of - er:rrrirse . 



• - - rer rs rae :rra:r rre: 



rarer a: ::r*rr:as: 



"rre ia rre rrare alahourh 35 of are 4 z 7 service ar"l Imt^r — 
tufaoturers' sales tranches rraarer iisoounts. Eighteen of the 
ana rae 1C nanuf a:rurers' sales :raa:aes rrenriar iisttuuts 



TABLE D. -ESTABLISHMENTS CLASSIFIED ACCORDING TO USUAL TERMS OF SALE 



.sua! iisoo; 



=-- = * Ireiir period 



Total 
nuttier :: 
- s r eh — 



Set* 



is taunt 
Other rrantei. 
rare not 

c - - - ^ -" 



SERUCE AND LIMITED-FUNCTION WHOLESALERS 



--=" ==--'-" • -"— r-r s 
cr :r :es" ::e r -:r 


— 


±Zc 


- ^ 


— 


— 


usuall" rraarei 


-.:-. 


::^ 


— 


— 


— 


- _ _ . . _ 


j.- 


47 


— 


— 


— 


1. ra~ s 


21 


19 


1 


— 


— 


1" r = " c 





I! 


1 


— 


— 


~: i=-s 


i 9 


z z 


: 


2 


g 


!raer ren:is 


z 


a 


g 


— 


— 


^:a:Lreri:a of rerrris" 


52 


- - 


— 


— 


— 



?err:ie r:r srarer 



- VFACTURERS' SALES BRANCHES 



li'.z-M: "-/y.r.-r::. 


57 


47 


— 


~ 


— 




" 


7 


— 


— 


— 


lays 


9 


= 


— 


— 


— 


_: lays 


7 


7 


— 




— 


'-'- lays 


18 


IE 


— 


— 


— 


Irrer rir::is 


: 


- 


— 


— 


— 


lr-':raari:a of re:;:is" 


- 


1 


— 


— 


— 


leri:is r:r srrrea 


-- 


3 


— 


— 


1C 



'. es _is::rr.r r:T rsnallr ;: 

* ?erioi ~er.es r:i ::rrr:ii-; 

1 "ae es" r.lisrrrear rer:rrei : 



:- -- =- 



erar^ 



- - - - - 



period as 1C iays ; 
:eri:r . 



ae ':'. lays; 



P««« 5 



Cash ts. Credit Sales 



33re casr-ore-iic iivisicr. :: '-'-2 sL.ii zz z:.z-~z. ir. .acle _. 



:iz^ -: -:-- -;-:: 



casi iisccu: 



- - t-_ 



2.5-1 cf -re salec :f ssrr-.ce 






- s - ■• c - — o c c 



car--Lrac:--rer = 



c^ * ~s— ' --^ s - — • ~-— = * "crarcc. es is cr cre*iit fcr a 

;S S— C?T a p — r* c — T— rCer'CS^'e Cf Credit f CT ~-~- —^ 



TABLE EL -CASH-CREDIT ANALYSIS OF SALli 
| Sales expressed in thousands of dollars ) 



. sral Treii- ,-erici 



a 



3rrer 
r=-=s 



SERMCE .AND LIMITED-FUNCTION WHOLESALERS 



>rrcer cf es'acli ?" — ? ~"£ 

let sales (1937) 
Srct cash 

Credit 10 days or less 
3rei^c r:re trar 1" iavs 

: e::n: cf ret - = ' - - 
3;:" casr 

."relit II ia;s cr less 
3reiic rcre trar 13 ravs 



^:: 



•=2 3 



Y^ ) - - ■ - - - 



:: 



IE." 



$2,33.3,::: 


% z : • ,-■-■' 


•<•- 


3?: , :•:•: 




E £-3 , „•« 


::-.:: 


4", ::: 


- , 




." - - " " ~ 


-94 ::•: 


42 9 : : : 




::-: :■:•: 


= : : 


32 .4 




cl.2 


2-" —• 


• _ - 




- - =r 



.SLANUFACTL'RERS' 5.ALES BRANCHES 



:r™cer of esra-lisrrrerts 




: " 


47 


-- 


Het sales 193". 




ic2, "33 . 33-3 


^ ^ - - « « ~- t ~~ 


$32.149.30: 


Srcr casr 


z , I _4 , 1 3C 


::z . . . 


3reiit 13 iavs cr lass 




_4 , 4r3, 3'3'3 




11,947,000 


Credir -era crar 13 iav 


s 


32 , 2 - E III 


13 . 341,303 


1033- ::: 


Perce- - : cf ret sales 










5—;- Z-SZ 




13 .2 


34.3 


1.1 


3reiit 13 ia"s cr less 






12.4 


3v: 


Credit rcre crar 13 lav 


3 


£2.3 




51.7 



:reciT sa_es iiscrrr-rec 



^ ere err cr a 



Credit Sales Discounted 















Page 6 



CENSUS SURVEY OF BUSINESS: 1937-38 



WHOLESALE DISTRIBUTION 



BEER AND OTHER FERMENTED MALT LIQUORS 

TABLE l.-NET SALES BY QUARTERS: 1937 AND FIRST HALF OF 1938 

FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 



DIVISION 



Size Of 

Sample 

Compared 

With 1935 

Census 



Estab- 
lish- 
ments 

% 



Net. 
Sales 



No. Of 

Estab- 
lish- 
ments 
Includ- 
ed In 
1937-38 
Survey 



Net* 
Sales 
Year 
1937 



(add 000) 



Net Sales By Quarters 
(add ooo) 



1937 



1ST QR. 

Jan. 1 
Mar. 31 



2ND QR. 

April 1 
June 30 



3RD QR. 

July 1 
SepL 30 



4TH QR. 

OcL 1 
Dec. 31 



1938 



1ST Qr. 

Jan. 1 
Mar. 31 



2nd Qr. 

April 1 
June 30 



Percent 
Chance 



1st Qr. 

1937 

To 

1st Qr 

1938 



2nd Qr 
1937 
To 

2nd Qr 
1938 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



UNITED STATES 

New England 
Middle Atlantic 
East North Central 
West North Central 
South Atlantis 
East South Central 
West South Central 
Mountain 
Pacific 



12 



21 



464 



33 

124 

131 

71 

26 

9 

14 

12 

44 



$86,483 



10,729 

17,383 

26,897 

9,825 

3,669 

1,777 

2,757 

893 

14,553 



$16,017 



1,929 

3,123 

4,865 

1,671 

753 

320 

545 

143 

2,668 



$23,874 



2,774 

4,649 

7,336 

2,653 

1,020 

483 

767 

250 

3,942 



$28,425 



3,653 

5,656 

8,693 

3,279 

1,088 

573 

846 

318 

4,319 



$20,167 



2,373 

3,955 

6,003 

2,222 

808 

401 

599 

182 

3,624 



$16,091 



1,938 

3,130 

4,763 

1,811 

711 

353 

566 

139 

2,680 



$22,049 



2,767 

4,412 

6,281 

2,450 

948 

439 

696 

218 

3,838 



♦ 0.5 



♦ 0.5 

♦ 0.2 

- 2.1 
+ 8.4 

- 5.6 
+10.3 

♦ 3.9 

- 2.8 
+ 0.4 



7.6 



- 0.3 

- 5.1 

-14.4 

- 7.7 

- 7.1 

- 9.1 

- 9.3 
-12.8 

- 2.6 



MANUFACTURERS' SALES BRANCHES (with stocks) 



UNITED STATES 

Middle Atlantic 

East North Central 

West North Central 

South Atlantio 

Pacific 

Other divisions 



26 



60 



1/ 



59,038 



14,161 
18,883 
7,863 
2,826 
9,867 
5,438 



10,355 



2,471 
3,232 
1,426 

589 
1,852 

785 



16,871 



3,953 
5,101 
2,282 
817 
3,135 
1,583 



19,111 



4,824 
6,056 
2,633 
836 
2,928 
1,834 



12,701 



2,913 
4,494 
1,522 
584 
1,952 
1,236 



10,887 



2,633 
3,477 
1,408 

602 
1,835 

932 



15,255 



3,654 
4,655 
1,915 
767 
2,793 
1,471 



+ 5.1 



+ 6.6 
+ 7.6 

- 1.3 
+ 2.2 

- 0.9 
♦18.7 



9.6 



■ 7.6 

- 8.7 
-16.1 

- 6.1 
■10.9 

- 7.1 



+ Increase - Decrease 

* Percentages in this column represent 1935 sales of establishments included in this survey, divided by total 1935 sales of each classification. 
1/ 1935 figures not available for calculating percent sample by geographic divisions. 

States Comprising Geographic Dlolslom: 



NEW ENGLAND-Conn., Maine, Mast., N. H., R. I., Vl. 

MIDDLE ATLANTIC-N. J., N. Y., Pa. 

EAST NORTH CENTRAL-Ill, Ind., Mich., Ohio, WU. 

WEST NORTH CENTRAL-lowa, Kane., Minn., Mo., Nebr., H. Da*., S. Dak. 

SOUTH ATLANTIC-Del., D. C, Flo., Co., Md., N. C, S. C, Va., W. Va. 



EAST SOUTH CENTRAL-Ala., Kit., Miw., T.nn. 
WEST SOUTH CENTRAL-Ark., La., Ohio., Tex. 
MOUNTAIN—Ariz., Colo., Idaho. Mom., Nev.. N. Met., Utah, Wvo. 
PACIFIC— Calif., Orel., Wath. 



CENSUS SURVEY OF BUSINESS: 1937-38 



Page 7 

WHOLESAI.F. DISTRIBUTION 



BEER AND OTHER FERMENTED MALT LIQUORS 

TABLE 2.- SALES, PAY ROLL AND STOCKS: 1937, 1936 AND 1935 

FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 



DIVISION 



Size Of 

Sample 

Compared 

With 1935 

Census 



Estab 

USH 

MENTS 

% 



Net- 
Sales 



No. Of 
Estab 
ush- 

MENTS 

Includ- 
ed In 

1937-38 
Survey 



Net Sales 

(add 000 ) 



1937 



1936 



Pay Roll* h 

(add 000 ) 



1937 



1935 



Stocks On Hand 
End Of Year 

(add 000) 



1937 



1936 



1935 



Percent Increase 
1935 to 1937 



Net 
Sales 



Pay 
Roll 



Stocks 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



UNITED STATBS 

New England 
Kiddle Atlantic 
East North Central 
West North Central 
South Atlantic 
East South Central 
West South Central 
lYountain 
Pacific 



464 



33 

124 

131 

71 

26 

9 

14 

1? 

44 



Sea, 483 



10,729 

17,333 

26,897 

9,825 

3,669 

1,777 

2,757 

893 

14,553 



¥78,142 



9,640 

15,244 

22,720 

8,954 

3,551 

1,654 

2,490 

754 

13,135 



957,745 



7,365 

10,762 

16,651 

6,805 

2,632 

1,091 

2,067 

662 

9,710 



$6,177 



743 

1,097 

l,Pr6 

729 

246 

182 

163 

53 

1,138 



53,935 



507 
699 

1,146 
445 
178 
101 
115 
46 
698 



¥3,849 



300 
409 
829 
378 
116 

60 
191 

37 
1,529 



$3,203 



254 

384 

720 

.344 

114 

51 

189 

34 

1,113 



198 

203 

443 

251 

74 

42 

145 

31 

775 



53.2 



45.7 
61.5 
61.5 
44.4 
39.4 
62.9 
33.4 
34.9 
49.9 



57.0 



46.5 
56.9 
59.3 
63. 8 
38.2 
80.2 
41.7 
15.2 
63.0 



78.0 



51.5 
101.5 
87.1 
50.6 
56.8 
42.9 
31.7 
19.4 
97.3 



MANUFACTURERS' SALES BRANCHES (with stocks) 



UNITED STATES 

Middle Atlantic 

^ast North Central 

West North Central 

South Atlantic 

Pacific 

Other divisions 



u u 



59,038 



14,161 
18,883 
7,863 
2,826 
9,867 
5,438 



52,396 



11,863 
15,680 
7,992 
2,470 
9,832 
4,559 



40,787 



9,922 
11,080 
6,103 
2,179 
8,332 
3,171 



2,986 



769 
897 
361 
152 
574 
233 



2,537 



601 
737 
329 
136 
539 
195 



81 
109 

80 

26 
205 

32 



551 



54 

129 
84 

22 
243 

19 



398 



35 
69 
68 
13 
200 
13 



44.7 



42.7 
70.4 
28.8 
29.7 
18.4 
71.5 



17.7 



28.0 
21.7 

9.7 
11.8 

6.5 
19.5 



33.9 



131.4 
58.0 

17.6 

100.0 

?.5 

146.2 



* Percentages in this column represent 1935 sales of establishments included in this survey, divided by total 1935 sales of each classification. 
* * Pay roll not available for year 1936. Pay roll includes compensation of both full-time and part-time employees, but not of proprietors and firm members of 
unincorporated businesses. 

_!/ 1935 figures not available for calculating percent sample by geographic divisions. 

States Comprising Geographic Divisions: 



NEW ENGLAND-Conn., Maine. Mass., N. H.. R. 1.. VI. 

MIDDLE ATLANTIC-N. J., N. V., Pa. 

EAST NORTH CENTRAL -111, Ind., Mich., Ohio, Wis. 

WEST NORTH CENTRAL-lowa. Kans.. Minn., Mo., Ncbr., N. Dak., S. Dak. 

SOUTH ATLANTIC -Del., D. C, Fla., Co., Mi, N. C, S. C, Va., W. Va. 



EAST SOUTH CENTRAL-Ala., Ky., Miss.. Twin. 

WEST SOUTH CENTRAL-Ark., La., Okla., Taf. 

MOUNTAIN— Ariz.. Colo.. Idaho. Mom.. Nev.. N. Mex., Utah. Wya. 

PACIFIC— Call/., Oreg.. WasJi. 



Page 8 






















CENSUS 


SURVEY OF BUSINESS: 1937-38 


WHOLESALE DISTRIBUTION 




BEER AND OTHER FERMENTED MALT LIQUORS 








TABLE 3.-SIZE OF SAMPLE 








1937 SURVEY COMPARED WITH 1935 CENSUS 








ESTABLISHMENTS, SALES AND PAY ROLL BY GEOGRAPHIC DIVISIONS 








Number Of 


Net Sales 


Pay Roll* 






Establishments 


l.dd ooo) 




add 000) 




Included in 




1935 Sales Of 




1935 Pay Roll Of 




DIVISION 




1937-38 




Those Included 




Those Included 






1935 


Survey 


1935 


In 1937-38 Survey 


1935 


In 1937-38 Survey 






Census 




% 

Sample 


Census 




% 

Sample 


Census 




% 

Sample 








Number 




Amount 




Amount 


SERVICE AND LIMITED-FUNCTION WHOLESALERS 




UNITED STATES 
New England 


4,016 


464 


12 


$ 281,259 


$ 57,745 


21 


$ 18,379 


$ 3,935 


21 


174 


33 


19 


22,766 


7,365 


32 


1,569 


507 


32 




Middle Atlantic 


1,210 


124 


10 


67,057 


10,762 


16 


4,111 


699 


17 




East North Central 


946 


131 


14 


76,384 


16,651 


22 


4,976 


1,146 


23 




West North CentrSl 


557 


71 


13 


36,262 


6,805 


19 


2,120 


445 


21 




South Atlantic 


273 


26 


10 


19,945 


2,632 


13 


1,543 


178 


12 




East South Central 


123 


9 


7 


6,438 


1,091 


17 


526 


101 


19 




West South Central 


246 


14 


6 


13,670 


2,067 


15 


844 


115 


14 




Mountain 


128 


12 


9 


7,937 


662 


8 


427 


46 


11 




Pacific 


359 


44 


12 


30,800 


9,710 


32 


2,263 


698 


31 


MANUFACTURERS' SALES BRANCHES (with stocks) 




UNITED STATES 
Middle Atlantic 


261 


67 


26 


68,275 


40,787 


60 


4,979 


2,537 


51 


1/ 


16 





i/ 


9,922 





1/ 


601 


-_ 




East North Central 




10 


— 


— 


11,080 


— 


— 


737 


— 




West North Central 


— 


18 


— 


— 


6,103 


— 


— 


329 


— 




South Atlantic 


— 


4 


— 


— 


2,179 


— 


— 


136 


— 




Pacific 


— 


12 


— 


— 


8,332 


— 


— 


539 


— 




Other Divisions 


— 


7 


— 


— 


3,171 


— 


— 


195 


~™ 


tt 


Pay roll includes compensation of full-time and part-time employees, but not of proprietors and firm members of unincor 


aerated businesses. 


JV 


1935 figures not available for calculating percent sample by geographic divisions. 

States Comprising Geographic Divisions: 








NEW ENGLAND-Conn., Maine, Mass., N. H., R. /., VI. EAST SOUTH CENTRAL -Ala., Ky., 


Miss., Tenn. 






MIDDLE ATLANTIC-N. J., N. Y., Pa. WEST SOUTH CENTRAL-Ark., La., 


Okla., Tex. 






EAST NORTH CENTRAL-IIL, Ind., Mich., Ohio, Wis. MOUNTAIN— Ariz., Colo., Idaho, Mon 


., Nev., N. Mex 


., Utah, Wyo. 




WEST NORTH CENTRAL .Iowa, Kan.., Minn., Mo., Nebr., N. Dak., S. Dak. PACIFIC— Calif., Oreg., Wash. 








SOUTH ATLANTIC-Del, 0. C, Fla., Ga., Md., N. C, S. C, Va., W. Va. 













I 



J v 



UNITED STATES DEPARTMENT OF COMMERCE 

Harry L. Hopkins, Secretary 

BUREAU OF THE CENSUS 

William L. Austin. Director 



CENSUS SURVEY OF BUSINESS: 1937-38 



WHOLESALE DISTRIBUTION 



CONFECTIONERY TRADE 



ism 




JANUARY, 1939 



I 



■ '■'.• 



• 



» 



CENSUS SURVEY OF BUSINESS: 1937-38 
Wholesale Distribution 

CONFECTIONERY TRADE 



This is one of a series of final reports presenting the findings of the Census Survey of 
Business for the year 1937 and the first half of 1938. Contained herein are dollar sales of 241 
identical wholesalers and 19 manufacturers' sales branches for the years 1935, 1936, 1937 and the 
first half of 1938; pay roll for the years 1935 and 1937, and the value of stocks on hand at the end 
of the years 1935, 1936 and 1937. Sales for the year 1937 and the first half of 1938 are shown by 
quarters. As added features, changes in the size of business, 1935 to 1937, are shown; establish- 
ments are classified according to their usual terms of sale; and sales for the year 1937 are analyzed 
to show cash and credit business separately. 

Unlike regular Censuses of Business, this Survey is not intended to present a complete pic- 
ture of the wholesale confectionery trade, but rather to provide a reliable indicator of trends since 
the last Census. It was conducted by mail from lists composed only of establishments included in the 
1935 Census, all new ones being omitted. Those with sales less than $25,000 for the year 1935 were 
likewise omitted, as they account for only a negligible portion of the total business. Reporting was 
purely on a voluntary basis, with only one reminder follow up; hence, not all wholesalers contacted 
submitted returns. This report, in order to provide reliable trend information, is further limited 
to those establishments engaged primarily in selling confectionery at wholesale during the year 1935 
and which still operate in a similar manner. 

SIZE OF SAMPLE 

A total of 241 service and limited-function wholesalers and 19 manufacturers' sales branches 
are included in this Survey. The 241 service and limited -function wholesalers represented 12 percent 
of the number and accounted for 23 percent of the business of all service and limited-function whole- 
salers engaged primarily in selling confectionery at wholesale in 1935. Similarly, the 19 manufac- 
turers' sales branches constituted a sample of 23 percent in number and 51 percent in sales. The 
summary for the United States follows: 

Service and Limited- Manufacturers' 

Function Wholesalers Sales Branches 



Period 


Number of 
establishments 


Net Sales 


Number of 
establishments 


Net Sales 


1935 Census 
1937-38 Survey 


2,070 

241 


$111,867,000 
25,497,000 


81 
19 


$37,096,000 
19,023,000 


Percent Sample 


12 


23 


23 


51 


Substantial Increases In Sales 











Net sales of the 241 service and limited-function wholesalers increased 14.0 percent from 
1935 to 1936 and 7.2 percent from 1936 to 1937 or 22.2 percent between 1935 and 1937. Likewise, the 
business of the 19 manufacturers' sales branches increased 9.0 percent between 1935 and 1936, and 
10.6 percent from 1936 to 1957, or 20.5 percent from 1935 to 1937. Sales of the identical establish- 
ments for the years 1935, 1936 and 1937 are given below: 

Service and Limited- Manufacturers' 

Function Wholesalers Sales Branches 

Number of Number of 

Year establishments Net Sales establishments Net Sales 

1935 241 $25,497,000 19 $19,023,000 

1936 241 29,059,000 19 20,729,000 

1937 241 31,162,000 19 22,929,000 



) 



Percent change, 1935 to 1937 22.2 20.5 



Page 2 



137 Million Dollars For Service And Limited-Function Wholesalers in 1937 

If the increase of 22.2 percent in sales over 1935 as found in this Survey is repre- 
sentative for all service and limited -function wholesalers engaged primarily in selling confec- 
tionery at wholesale during 1937, their total business would have approximated 137 million dol- 
lars. Likewise, with a 20.5 percent increase the 1937 business for manufacturers' sales bran- 
ches must have exceeded 44 million dollars. 

Sales Increased More Than Pay Roll 

It is interesting to note that sales for service and limited -function wholesalers in- 
creased more than pay roll between 1935 and 1937 22.2 percent for sales as compared with 20.5 

percent for pay roll. Likewise, manufacturers' sales branches reported a 20.5 percent increase 
in business as compared with only a 6.2 percent rise in pay roll. Percent increase in sales, pay 
roll and stocks are given below: 



Type of Operation 

241 Service and limited-function wholesalers 
19 Manufacturers' Sales Branches 



Percentage Increases, 1937 over 1955 

Stocks 
Sales Pay roll (end of year) 



22.2 
20.5 



20.5 
6.2 



15.8 
27.1 



Table 3, attached, measures the size of the sample included in this Survey in terms of 
the 1935 Census. In this table the number, together with the 1935 sales and pay roll, of those 
included is compared by geographic divisions with the totals in 1935. For convenience in using 
the information the percent sample, establishments and sales, is reproduced in Tables 1 and 2. 

Table 2 presents comparable information by geographic divisions as to sales and inven- 
tories of the 241 wholesalers and 19 manufacturers' sales branches for the years 1935, 1936 and 
1937, and on pay roll for the years 1935 and 1937. 

Quarterly Sales, 1937 and First Half of 1938 



A measure of the short-term trend in the confectionery trade is given in terms of 
quarterly sales of the 241 service wholesalers and 19 manufacturers' sales branches for the year 
1937 and the first half of 1938. Quarterly sales by geographic divisions are shown in Table 1. 
The summary for the United States follows: 





Service and Limit ed- 
Function Wholesalers 


Manufacturers ' 
Sales Branches 


Period 


Net sales 


% change 

from 

preceding 

quarters 


Net sales 


$ change 

from 

preceding 

quarters 


Number of establishments included 


241 




19 




1st Qr. 1937 
2nd Qr. 1937 
3rd Qr. 1937 
4th Qr. 1937 


$7,218,000 
7,735,000 
7,811,000 
8,398,000 


+ 7.2 
+ 1.0 
+ 7.5 


$6,066,000 
4,944,000 
5,845,000 
6,074,000 


- 18.5 
+ 18.2 
+ 3.9 


1st Qr. 1938 
2nd Qr. 1938 


6,721,000 
7,043,000 


- 20.0 
+ 4.8 


5,640,000 
4,811,000 


- 7.1 

- 14.7 




Percent 


change 


1st Qr. 1938 vs. 1st Qr. 1937 
2nd Qr. 1938 vs. 2nd Qr. 1937 


- 6.9 

- 8.9 




- 7.0 

- 2.7 


C 


First half 1938 vs. first half 1937 


- 8.0 




- 5.1 





P«ge 3 



BY SIZE OF ESTABLISHMENT 



Of the 241 service and limited-function wholesalers included in this Survey, 219 are classified 
as wholesale merchants, 2 as cash-and-carry houses and 20 as wagon distributors. The 219 wholesale mer- 
chants are arranged according to their 1935 size, in Table A, below, where their number and sales are 
compared by size classification with all wholesale merchants specializing in confectionery for that year. 
As might be expected a greater percentage of the larger houses are included than of the smaller ones. 
For example, 3 of the 12 establishments (25%) for the $500, 000-and-over group and 12 of the 35 (34$) from 
$300,000 - $499,999 are included as compared with only 62 of 966 establishments ( 6^) with sales of less 
than $50,000 in 1935. 



TABLE A. -SAMPLE 


BY SIZE OF ESTABLISHMENT-WHOLESALE MERCHANTS ONLY 




Number of 


Net Sales - 1935 




Size of establishment 


establishments 


(add 000) 


Percent Sample 


(Net sales in 1935) 


1935 


1937-38 


1935 


1937-38 


Estab- 


Net 




Census 


Survey 


Census 


Survey 


lishments 


sales 


Total 


1,580 


219 


$97,876 


$24,135 


14 


25 


$500,000 and over 


12 


3 


2,817 


1,793 


25 


64 


$300,000 - $499,999 


35 


12 


12,629 


4,317 


34 


34 


$200,000 - $299,999 


51 


14 


12,029 


3,408 


27 


28 


$100,000 - $199,999 


175 


49 


23,881 


6,940 


28 


29 


$50,000 - $99,999 


341 


79 


28,731 


5,466 


23 


23 


Under $50,000 


966 


62 


17,789 


2,211 


6 


12 



Increases By Size, 1937 Over 1935 

Percentage increases in sales, pay roll and stocks, 1937 over 1935, of the 219 wholesale mer- 
chants are shown in Table B, below, by size of establishment. It is interesting to note that smaller 
establishments show greater relative increases in sales and pay roll than the larger ones. For example, 
the 62 establishments under $50,000 show a gain of 27.2 percent in sales and 30.2 percent in pay roll as 
compared with a 16.2 percent rise in sales and 13.4 percent increase in pay roll for the 3 establishments 
in the $500, 000-and -over group. On the other hand, stocks for the $500 , 000-and-over group were up 14.9 
percent compared with only a 5.0 percent rise for the under $50,000 bracket. 

TABLE B.-INCREASES IN SALES, PAY ROLL AND STOCKS, 1937 OVER 1935, 
BY SIZE OF ESTABLISHMENT 





Number of 


Percent 


increase, 1937 over 1935 


Size of establishment 


Estab- 






Stocks 


(Net sales in 1935) 


lishments 


Sales 


Pay roll 


(end of year) 


Total 


219 


22.5 


20.5 


14.9 


$500,000 and over 


3 


16.2 


13.4 


19.6 


$300,000 - $499,999 


12 


22.4 


25.9 


25.0 


$200,000 - $299,999 


14 


24.2 


26.4 


16.3 


$100,000 - $199,999 


49 


16.1 


9.4 


15.5 


$50,000 - $99,999 


79 


30.0 


28.7 


10.7 


Under $50,000 


62 


27.2 


30.2 


5.0 



Changes of establishments from one size bracket to another, 1935 to 1937, are shown in Table C. 
In keeping with the general increase in sales, the trend was from the lower to the upper groups. For ex- 
ample, 6 houses were in the $500 , 000-and-over group in 1937 as compared with only 3 in 1935. On the 
other hand, 62 houses had sales of less than $50,000 in 1937 as compared with 50 in 1935. A total of 63 
establishments moved up in classification, while only 9 dropped to lower groups. Five establishments in- 
creased as much as two size brackets. 

TABLE C.-NUMBER OF ESTABLISHMENTS BY SIZE CLASSIFICATION; 1935 AND 1937 

(Wholesale merchants only) 





Total 


1 


2 


3 


4 


5 


6 


Size of establishment 


establishments 


in 


in 


in 


in 


in 


in 


(based on net sales) 


1935 


1937 


1937 


1937 


1937 


1937 


1937 


Total establishments, 1937 


219 


6 


16 


22 


56 


69 


50 


$500,000 and over 


3 


3 












$300,000 - $499,999 


12 


3 


9 










$200,000 - $299,999 


14 




7 


6 


1 






$100,000 - $199,999 


49 






13 


35 


1 




$50,000 - $99,999 


79 






3 


18 


51 


7 


Under $50,000 


62 








2 


17 


.43. 



(1) $500,000 and over in 1937 

(2) $300,000 - $499,999 in 1937 

(3) $200,000 - $299,999 in 1937 



(4) $100,000 - $199,999 in 1937 

(5) $50,000 - $99,999 in 1937 

(6) Under $50,000 in 1937 



Page 4 



TERMS OF SALE 

The Bureau of the Census collected information in this Survey for the first time 
on the usual terms of sale. Each cooperating establishment was asked to report its usual 
credit period and its customary cash discount rate, if any. In addition, sales for the 
year 1937 were to be analyzed to show "spot cash" business; credit sales, 10 days or less; 
and credit of more than 10 days. Houses granting discounts for early payment of time sales 
were asked to report the percentage of their credit sales discounted in 1937. The results 
of these inquiries are presented in Tables D and E. Not all houses were able to supply the 
information, hence, the number of establishments in these tables is less than the total 
number included in this Survey. 



Credit Period And Rate Of Discount 



Table D classifies 209 service and limited-function wholesalers and 19 manufac- 
turers* sales branches according to usual credit periods and cash discount rates. It 
should be noted that these are the usual terms for the houses, and that either or both the 
credit period and the rate of discount may vary with the commodity sold and with the cus- 
tomer. Also the classification as given here represents the policy of the house from which 
practice may vary. 

Thirty days (reported by 83 service wholesalers and 17 sales branches) is the 
most common credit period in the trade. However, 20 service and limited-function whole- 
salers sell on a spot cash basis; 13 on credit for a period of 10 days; and 3 for 15 days. 
Eleven establishments reported that they normally extend credit for 60 days. A cash dis- 
count of 2 percent is usually granted although 50 service and limited -function wholesalers 
bill net and 16 offer a combination of rates. Nineteen stated that they grant discounts 
but failed to give the rate. 



TABLE D.-ESTABLISHMENTS CLASSIFIED ACCORDING TO USUAL TERMS OF SALE 



Usual Credit Period 



Total 
number of 

estab- 
lishments 



Usual discount rate 



Net* 



2% 



Combina- 
tion of 
rates** 



Di scount 

granted, 

rate not 

stated 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



Total establishments 


209 


50. 


1/ 124 


16 


li 


Spot cash (credit not 












usually granted) 


20 


20 


— 


— 


— 


10 days 


13 


9 


1 


~ 


3 


15 days 


3 


3 


— 


— 


— 


30 days 


83 


11 


62 


8 


2 


60 days 


11 


— 


9 


2 


— 


Periods not stated 


79 


7 


52 


6 


14 



MANUFACTURERS' SALES BRANCHES 



Total establishments 

30 days 

Periods not stated 



19 
17 

2 



y i9 

17 
2 



* Cash discount not usually granted. 

** Rate differs with commodity and customer, no single rate predominating. 

1/ 2 establishments reported their discount periods as 7 days; 63 as 10 days; 20 

as 15 days; 33 as 30 days; and 6 as more than 30 days. 
2/ 14 establishments reported their discount period as 10 days; 5 as 15 days. 



Page 5 

Cash vs. Credit Sales 

The cash-credit division of 1937 sales is given in Table E. Approximately one-half 
(51.4$) of the sales of service wholesalers are for a credit period of more than 10 days as com- 
pared with one-sixth (16.7$) for a credit period of less than 10 days, and one-third (31.9$) at 
"spot cash". Likewise, two-fifths (39.2$) of the business of manufacturers' sales' branches is on 
credit for more than 10 days as compared with approximately three-fifths (60.2$) for a period of 
less than 10 days. Less than 1 percent (0.6$) is for cash. 

TABLE E.--CASH-CREDIT ANALYSIS OF SALES 



(Sales expressed in thov 


sands of dollars) 








Total 


Usual discount rate 


Usual Credit Period 


Net 


2$ 


Combina- 
tion of 
rates 


Discount 

granted, 

rate not 

stated 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



Number of establishments 


209 


50 


124 


16 


19 


Net sales (1937) 


$27,277 
8,700 


$5,107 


$17,960 
4,304 


11.941. 

744 


$2,269 


Spot cash 


2,770 


882 


Credit 10 days or less 


4,560 


1,330 


2,494 


315 


421 


Credit more than 10 days 


14,017 


1,007 


11,162 


882 


966 


Percent of net sales 












Spot cash 


31.9 


54.2 


24.0 


38.3 


38.9 


Credit 10 days or less 


16.7 


26.1 


13.9 


16.2 


18.5 


Credit more than 10 days 


51.4 


19.7 


62.1 


45.5 


42.6 






Percent 


of credit sales discounted 


Percent of all credit sales 












discounted (weighted average) 






50.4 


37.6 


38.3 



MANUFACTURERS' SALES BRANCHES 






Number of establishments 


19 




19 






Net sales (1937) 
Spot cash 

Credit 10 days or less 
Credit more than 10 days 

Percent of net sales 
Spot cash 

Credit 10 days or less 
Credit more than 10 days 


$22,609 

137 

13,605 

8,867 

0.6 

60.2 
39.2 




$22,609 

137 

13,605 

8,867 

0.6 
60.2 
39.2 








Percent of credil 


; sales discounted 


Percent of all credit sales 
discounted (weighted average) 






82.8 







Credit Sales Discounted 

The extent to which customers take advantage of cash discounts where allowed is also 
shown in Table E. Service and limited-function wholesalers selling on a 2$ basis discounted 50.4 
percent of their 1937 business and manufacturers' sales branches granting a similar rate discount- 
ed 82.8 percent of their 1937 sales. 



- - 



The current Census Survey of Business includes retail as well as wholesale trade and is 
nation-wide in scope. It is being conducted by the Bureau of the Census with funds provided by 
the Works Progress Administration. The project is under the direction of Fred A. Gosnell, Chief 
Statistician, who was also in charge of previous Business Censuses. Wholesale trade reports are 
prepared under the immediate supervision of John Albright, assisted by James D. Lenig. 



Page 6 

CENSUS SURVEY OF BUSINESS: 1937-38 



WHOLESALE DISTRIBUTION 



CONFECTIONERY TRADE 

TABLE l.-NET SALES BY QUARTERS: 1937 AND FIRST HALF OF 1938 

FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 



DIVISION 



Size Of 

Sample 

Compared 

With 1935 

Census 



Estab- 
lish- 
ments 



Net* 
Sales 



No. Of 
Estab- 
lish- 
ments 
Includ- 
ed In 
1937-38 
Survey 



Net 
Sales 
Year 
1937 



(odd 000 ) 



Net Sales By Quarters 
(add ooo) 



1937 



1ST QR. 

Jan. 1 
Mar. 31 



2nd Qr. 

April 1 
June 30 



3RD QR. 

July 1 
Sept. 30 



4TH QR. 

Oct 1 
Dec. 31 



1938 



1ST Qr. 

Jan. 1 
Mar. 31 



2nd Qr. 

April 1 
June 30 



Percent 
Chance 



1st Qr. 

1937 

To 
1st Qr 

1938 



2nd Qr 

1937 

To 

2nd Qr 

1938 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



UNITED STATES 

New England 
Middle Atlantic 
East North Central 
West North Central 
South Atlantic 
West South Central 
Pacific 
Other divisions 



12 



23 



241 



$31,162 



3,027 
11,124 
6,753 
750 
4,104 
1,988 
2,107 
1,309 



$7 , 218 



662 
2,626 
1,546 
167 
999 
487 
465 
266 



$7,735 



746 

2,742 

1,669 

194 

1,029 

479 

520 

356 



$7,811 



822 
2,767 
1,684 
182 
995 
484 
513 
364 



$8,398 



797 

2,989 

1,854 

207 

1,081 

538 

609 

323 



$6 , 721 



610 
2,321 
1,497 
162 
915 
510 
449 
257 



$7,043 



690 
2,452 
1,551 
167 
894 
494 
485 
310 



6.9 



- 7.9 
-11.6 

- 3.2 

- 3.0 

- 8.4 
+ 4.7 

- 3.4 

- 3.4 



8.9 



- 7.5 

-10.6 

- 7.1 
-13.9 
-13.1 
+ 3.1 

- 6.7 
-12.9 



MANUFACTURERS' SALES BRANCHES (with stocks) 



UNITED STATES 



23 



51 



19 



22,929 



6,066 



4,944 



5,845 



6,074 



5,640 



4,811 



- 7.0 - 2.7 



+ Increase - Decrease 

* Percentages in this column represent 1935 sales of establishments included in this survey, divided by total 1935 sales of each classification. 



States Comprising Geographh 
NEW ENCLAND-Conn., Maine, Mass., N. H., R. I., Vt. 
MIDDLE ATLANT1C-N. J., N. Y., Pa. 
EAST NORTH CENTRAL-UL, Ind., Mich., Ohio, Wis. 

WEST NORTH CENTRAL -Iowa, Kans., Minn., Mo., Nebr., N. Dak., S. Dak. 
SOUTH ATLANTIC-Del, D. C, Fla., Co., MA, N. C, S. C, Va., W. Va. 



Divisions: 

EAST SOUTH CENTRAL-Ala., Ky., Miss., Tenn. 
WEST SOUTH CENTRAL -Ark., La., Ohla., Tex. 
MOUNTAIN— Ariz., Colo.. Idaho. Mont., Nev., N. Mex., 
PACIFIC— Calil., Oreg.. Wash. 



Utah. Who. 






CENSUS SURVEY OF BUSINESS: 1937-38 



Page 7 

WHOLESALE DISTRIBUTION 



CONFECTIONERY TRADE 

TABLE 2.- SALES, PAY ROLL AND STOCKS: 1937, 1936 AND 1935 

FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 



DIVISION 



Size Of 

Sample 

Compared 

With 1935 

Census 



Estab 

USH- 
MENTS 



Net* 
Sales 



No. Of 
Estab- 
lish- 
ments 

Includ- 
ed In 

1937-38 
Survey 



Net Sales 

(add 000) 



1937 



1936 



1935 



Pay Roll* 

(add 000) 



1937 



1935 



Stocks On Hand 
End Of Year 

(add 000* 



1936 



1935 



Percent Increase 
1935 io 1937 



Net 
Sales 



Pay 
Roll 



Stocks 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



UNITED STATES 

New England 
Middle Atlantic 
East North Central 
West North Central 
South Atlantic 
West South Central 
Pacific 
Other divisions 



$31,162 



3,027 
11,124 
6,753 
750 
4,104 
1,988 
2,107 
1,309 



$29,059 



2,607 
10,724 
6,234 
734 
3,848 
1,820 
1,866 
1,226 



$25,497 



2,694 
9,558 
5,310 

667 
3,502 
1,438 
1,415 

913 



$2 , 502 



232 
850 
467 

92 
398 

88 
254 
121 



$2,076 



209 
769 
406 

65 
346 

74 
140 

67 



$2,219 



205 
799 
452 
61 
290 
154 
148 
110 



$2,201 



186 
800 
432 
64 
294 
168 
148 
109 



$1,916 



178 
761 
348 

55 
255 
153 
107 

59 



22.2 



12.4 
16.4 
27.2 
12.4 
17.2 
38.2 
48.9 
43.4 



15.8 



15.2 
5.0 
29.9 
10.9 
13.7 
0.7 
38.3 
86.4 



MANUFACTURERS' SALES BRANCHES (with stock.) 



UNITED STATES 



23 



51 



19 22,929 20,729 19,023 



671 



632 



684 



593 



538 20.5 



6.2 27.1 



* Percentages in this column represent 1935 sales of establishments included in this survey, divided by total 1935 sales of each classification. 
* * Pay roll not available for year 1936. Pay roll includes compensation of both full-time and part-time employees, but not of proprietors and firm members of 
unincorporated businesses. 

Statet Comprising Geographic Dlpltloni: 

EAST SOUTH CENTRAL-Ala., K»., Miu., Term. 
WEST SOUTH CENTRAL~-Ark., La., Okla., Tex. 



VI. 



NEW ENCLAND-Corm., Maine, Ma.1., N. H., R. I., 

MIDDLE ATLANTIC-N. J., N. Y., Pa. 

EAST NORTH CENTRAL-IIL, Ind, Mich., Ohio, WIm. 

WEST NORTH CENTRAL -lama, Kan*,, Minn., Mo., Near., N. Dak., S. Dot. 

SOUTH ATLANTIC-DeL. D. C, Fla., Co., MA, N. C, S. C, Va., W. Va. 



MOUNTAIN— Ariz.. Colo.. Idaho 
PACIFIC— Call!., Orcg.. Waih. 



Mora., Ntv., N. Mac., Utah. Wyo 



Page 8 

CENSUS SURVEY OF BUSINESS: 1937-38 



CONFECTIONERY TRADE 

TABLE 3.-SIZE OF SAMPLE 

1937 SURVEY COMPARFD WITH 1935 CENSUS 

ESTABLISHMENTS, SALES AND PAY ROLL BY GEOGRAPHIC DIVISIONS 



WHOLESALE DISTRIBUTION 



DIVISION 



Number Of 
Establishments 



1935 

Census 



Included In 
1937-38 

Survey 



Number 



Sample 



Net Sales 

Udd 000 ) 



1935 

Census 



1935 Sales Of 
Those Included 
In 1937-38 Survey 



Amount 



Sample 



Pay Roll* 

(add 000) 



1935 

Census 



1935 Pay Roll Of 
Those Included 
In 1937-38 Survey 



Amount 



Sample 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



UNITED STATES 

New England 
Middle Atlantic 
East North Central 
West North Central 
South Atlantic 
West South Central 
Pacific 
Other divisions 



8,070 



139 
601 
459 
140 
287 
158 
134 
142 



241 



25 
85 
54 
10 
35 
11 
13 
8 



12 



18 
14 
12 

7 
12 

7 
10 

6 



$111,867 



8,891 

37,207 

20,417 

7,193 

16,467 

9,824 

5,274 

6,594 



$25,497 



2,694 
9,558 
5,310 

667 
3,502 
1,438 
1,415 

913 



23 



30 
26 
26 
9 
21 
15 
27 
14 



$7,602 



607 

2,665 

1,381 

457 

1,246 

522 

333 

391 



$2,076 



27 



209 


34 


769 


29 


406 


29 


65 


14 


346 


28 


74 


14 


140 


42 


67 


17 



MANUFACTURERS' SALES BRANCHES (with stocks) 



UNITED STATES 



81 



19 



23 



37,096 



19,023 



51 



1,910 



632 



33 



* Pay roll includes compensation of full-time and part-time employees, but not of proprietors and firm members of unincorporated businesses. 

States Comprising Geographic Divisions: 

NEW ENCLAND-Conn., Maine, Mass., N. H., R. I., VI. EAST SOUTH CENTRAL-Ala., Ky., Miss., Term. 

MIDDLE ATLANTIC-N. J., N. Y., Pa. WEST SOUTH CENTRAL-Ark., La., Okla., Tex. 

EAST NORTH CENTRAL- ■•/«., Ind., Mich., Ohio, Wis. MOUNTAIN— Ariz.. Colo., Idaho. Mont., Neo., N. Mex., Utah, Wyo. 

WEST NORTH CENTRAL -Iowa, Kans., Minn., Mo., Nebr., N. Dak., S. Dak. PACIFIC— Calii., Oreg.. Wash. 
SOUTH ATLANTIC .Del., D. C, Fla., Ca., Md., N. C, S. C, Vo., W. Va. 



' 



i 



(1 






UNITED STATES DEPARTMENT OF COMMERCE 

Harry L. Hopkins, Secretary 

BUREAU OF THE CENSUS 

William L. Austin. Director 



CENSUS SURVEY OF BUSINESS: 1937-38 



WHOLESALE DISTRIBUTION 



DRUGS AND DRUG SUNDRIES 



BUM OF THE CQGBS 
UBRARi 




JANUARY, 1939 



( 



CENSUS SURVEY OF BUSINESS: 1937-38 
Wholesale Distribution 

DRUGS AND DRUG SUNDRIES 

This is one of a series of final reports presenting the findings of the Census Survey of 
Business for the year 1937 and the first half of 1938. Contained herein are dollar sales of 362 
identical establishments — 308 service and limited-function wholesalers and 54 manufacturers' sales 
branches — for the years 1935, 1936, 1937 and the first half of 1938; pay roll for the years 1935 
and 1937; and the value of stocks on hand at the end of the years 1935, 1936 and 1937. Sales for 
the year 1937 and the first half of 1933 are shown by quarters. As added features, changes in the 
size of business, 1935 to 1937, are shown; establishments are classified according to their usual 
terras of sale; and sales for the year 1937 are analyzed to show cash and credit business separately. 

This Survey, unlike regular Censuses of Business, is not intended to present a complete 
picture of the wholesale drug business, but rather to provide a reliable indicator of trends since 
the last Census. It was conducted by mail from lists made up only of establishments included in the 
1935 Census, all new ones being omitted. Those with sales of less than $25,000 for the year 1935 
were likewise omitted, as they account for only a negligible portion of the total business. Report- 
ing was purely on a voluntary basis with only one reminder follow-up; hence, not all establishments 
contacted submitted returns. This report, in order to provide reliable trend information, is further 
limited to those establishments engaged primarily in selling drugs, proprietories, toiletries and 
drug sundries at wholesale during the year 1935 and continue to operate in a similar manner. 

Three Regular Censuses 

Three regular Censuses of Business have been taken covering the years 1929, 1933 and 1935 
respectively. Below is a comparison of the number of establishments and sales for each of the Census 
periods. 



Service and limited- 
Function Wholesalers 



Manufacturers ' 
Sales Branches 



Period 



1929 Census 
1933 Census 
1935 Census 

Percent change 
1929 to 1933 
1933 to 1935 



Number of 




Number of 




estab- 


Net sales 


estab- 


Net sales 


lishments 




lishments 




1,201 


#534,959,000 


not 


available 


1,169 


350,326,000 


202 


$ 83,761,000 


1,563 


447,582,000 


270 


128,468,000 


- 2.7 


- 34.5 






+ 33.7 


+ 27.8 


+ 33.7 


+ 53.4 



Identical establishments in this Survey: 

1935 - 308 $239,262,000 

1936 308 269,761,000 

1937 308 298,345,000 



54 
54 

54 



$42 , 917 , 000 
47,861,000 
52,416,000 



Percent change, identical establishments 

1935 to 1936 + 12.7 

1936 to 1937 + 10.6 



+ 11.5 
+ 9.5 



1937 Compared With 1935 

Of the 308 service and limited-function wholesalers included in this Survey, 148 are classi- 
fied as full-line houses — 138 service wholesalers and 10 cooperatives or mutuals — and 160 as 
specialty line houses dealing in proprietories, toiletries and drug sundries. Forty-two of the full- 
line service wholesalers maintain liquor departments, while 96 do not. Percentage increases, 1937 



Page 2 

over 1935, in sales, pay roll and end of year inventories are given below for each type of establishment. 
It is interesting to note that for full-line wholesalers, pay roll and inventories show larger percentage 
increases than sales; 24.4 percent for inventories, 23.7 percent for pay roll and 23.1 percent for volume 
of business. Also, pay roll of the 160 specialty line houses was up 45.8 percent as compared with a 32.1 
percent rise in sales. Inventories of specialty line houses, however, were off 2.6 percent. 



Percent increase, 1937 over 1935 



Type of Operation 

148 Drugs full -line 

96 without liquor departments 
42 with liquor departments 
10 cooperatives and mutuals 

160 Drugs specialty line 

54 Manufacturers' sales branches 



Net sales 


Pay roll 


(end of s 


23.1 


23.7 


24.4 


16.8 


16.7 


17.8 


31.4 


31.0 


32.6 


18.0 


35.6 


18.4 


32.1 


45.8 


- 2.6 


22.1 


23.0 


4.2 



Quarterly Sales, 1937 and First Halt of 1938 

A measure of the short term trend in the wholesale drug trade is given in terms of quarterly sales 
for 1937 and the first half of 1938. Quarterly sales by geographic divisions — drug and liquor departments 
separately for full-line houses — are shown In Table 1. The summary for the United States follows: 





Service 


and Limited-Function Wholesalers 




Manufacturers • 




Full-line 


Specialty- 


-lines 


Sales 


Period 


Drug Departments 


Liquor Dei 


)artments 


Net Sales 
(add 000) 


(1) 


Branches 




Net Sales 
(add 000) 


(1) 


Net Sales 
(add 000) 


(1) 


Net Sales 
(add 000) 


(1) 


Number of estab- 
lishments 


148 






42 




160 




54 




1st Qr. 1937 
2nd Qr. 1937 
3rd Qr. 1937 
4th Qr. 1937 


$52,014 
49,597 
52,094 
53,905 


+ 
+ 


4.6 
5.0 
3.5 


$ 7,683 

7,750 

7,373 

11,306 


+ 0.9 
- 4.9 
+ 53.3 


$13,908 

. 13,678 

12,940 

16,097 


- 1.7 

- 5.4 
+ 24.4 


$15,203 
12,695 - 
12,148 - 
12,370 + 


16.5 
4.3 
1.8 


1st Qr. 1938 
2nd Qr. 1938 


49,631 
47,237 


- 


7.9 
4.8 


7,384 
7,618 


- 34.7 

+ 3.2 


13,029 
13,180 


- 19.1 
+ 1.2 


13,507 + 
11,358 - 


9.2 
15.9 






Percent 


change 




1st Qr. 1938 vs. 

1st Qr. 1937 
2nd Qr. 1938 vs. 

2nd Qr. 1937 


- 4.6 

- 4.8 




- 3.9 

- 1.7 


- 6.3 

- 3.6 




- 11.2 

- 10.5 





(1) Percent of change from preceding quarter. 

Percent Sample 

The 148 full-line establishments in this Survey represented 50 percent of. the number and account- 
ed for 61 percent of the business of all such houses in 1935, and the 160 specialty line establishments con- 
stitute a sample of 13 percent in number and 35 percent in sales. The sample for manufacturers' sales 
branches is 20 percent of establishments and 33 percent of sales. 

Table 3, attached, measures the size of the sample included in this Survey in terms of the 1935 
Census. In this table the number of those included, together with 1935 sales and pay roll, is compared by 
geographic divisions with the totals in 1935. For convenience in using the information the percent sample, 
of establishments and sales, is reproduced in Tables 1 and 2. 



Table 2 presents comparable information by geographic divisions on sales and inventories of the 
308 service and limited-function wholesalers and the 54 manufacturers' sales branches for the years 1935, 
1936 and 1937, and on pay roll for the years 1935 and 1937. 



Page 3 

SIZE OF ESTABLISHMENT 

The 138 full-line service wholesalers are arranged according to their 1935 size in Table A, 
below, where their number and sales are compared by size classification with all service wholesalers 
selling a full -line of drugs for that year. As might be expected, a greater percentage of large houses 
reported for this Survey than small ones. Twenty-four of the 39 establishments (62$) in the $2,000,000- 
and-over bracket are included as compared with only 30 of the 97 houses (31$) in the under-$500,000 
group. 

Of the 160 specialty line houses studied, 138 are classified as wholesale merchants, 1 as a 
cooperative, 2 as exporters, 15 as importers, and 4 as mail order houses. The 138 wholesale merchants 

are also classified according to size in 1935 and compared with the total for that year. Here also the 
sample is largest in the upper bracket and decreases with size. 



TABLE A.-SAMPLE BY SIZE OF ESTABLISHMENT-SERVICE WHOLESALERS ONLY 



Size of establishment 


Number of 
establishments 


Net sales-1935 
(add 000) 


Percent 3 


ample 


(Net sales in 1935) 


1935 
Census 


1937-38 
Survey 


1935 
Census 


1937-38 
Survey 


Estab- 
lishments 


Net 
sales 


DRUGS (full-line) 


Total 


274 
39 
68 
70 
97 


138 
24 
49 
35 
30 


$297,784 

129,865 

91,565 

51,237 

25,117 


$179,969 


50 
62 
72 

50 
31 


61 


$2,000,000 and over 
$1,000,000 - $1,999,999 
$500,000 - $999,999 
Under $500,000 


77,871 

67,052 

25,728 

9,318 


60 
73 
50 
37 




DRUGS (specia 


Ity lines) 








Total 
$500,000 and over 
$200,000 - $499,999 
Under $200,000 


1,149 
32 
77 

1,040 


138 
13 
25 

100 


$112,813 
51,008 
24,543 
37,262 


$40,143 

24,560 

7,920 

7,663 


12 
41 

32 
10 


36 
48 
32 

21 



Increases By Size, 1937 Over 1935 

Percentage increases in sales , pay roll and stocks — 1937 over 1935 — are given by size 
groups in Table B for the 96 full -line service wholesalers without liquor departments; the 42 houses 
with liquor departments and for the 138 wholesale merchants handling specialty lines. In general sales 
of smaller establishments increased more than larger ones. Full-line houses without liquor departments, 
for example, show an increase of 21.2 percent in the under-$500,000 bracket; 20.6 percent for the 
$500,000 - $999,999 group; 15.9 percent for the $1,000,000 - $1,999,999 classification; and 13.7 percent 
in the $2,000,000-and-over bracket. Sales of the 29 houses with liquor departments whose individual 
businesses amounted to less than $2,000,000 in 1935 increased 40.9 percent as compared with a gain of 
only 23.9 percent for the 13 houses over $2,000,000. The correlation between size and increase in sales 
is not so pronounced for specialty line merchants. 



TABLE B.-INCREASES IN SALES, PAY ROLL AND STOCKS, 1937 OVER 1935, 
BY SIZE OF ESTABLISHMENT 





Number of 

estab- 
lishments 


Percent 


Increase , 1937 over 1935 




Size of establishment 
(Net sales in 1935) 


Sales 


Pay roll 


Stocks 
(end of year) 




DRUGS (fu 


Mine) 








Without liquor departments 
Total 
$2,000,000 and over 
$1,000,000 - $1,999,999 
$500,000 - $999,999 
Under $500,000 


96 
11 
26 
29 
30 


16.8 
13.7 
15.9 
20.6 
21.2 


16.7 
16.3 
17.4 
14.2 

20.9 


17.8 
15.3 
27.7 
11.2 
9.4 





Page 4 



TABLE B.-continued 



Size of establishment 
(Net sales in 1935) 



Number of 

estab- 
lishments 



Percent increase, 1937 over 1935 



Sales 



Pay roll 



Stocks 
(end of year] 



DRUGS (full-line) 



With liquor departments 

Total 

$2, 000, 000 and over 

$1,000,000 - $1,999,999 

#500,000 - $999,999 




32.6 
25.3 

40.2 



DRUGS (specialty lines) 



Total 


138 


31.3 


46.0 


- 2.6 


#500,000 and over 


13 


33.4 


70.1 


- 20.2 


$200,000 - $499,999 


25 


22.0 


22.9 


16.9 


Under $200,000 


100 


34.3 


23.3 


20.6 



Changes of establishments from one size bracket to another, 1935 to 1937, are shown in 
Table C. In keeping with the general increase in sales, the trend was from the lower to the up- 
per groups. For example, 15 of the 96 houses without liquor departments were in the $2,000,000- 
and-over group in 1937 as compared with only 11 in 1935. On the other hand, 30 had sales of 
less than $500,000 in 1935 as compared with only 23 in 1937. A total of 17 establishments moved 
up in classification, while none dropped to a lower group. A similar trend is noted for spe- 
cialty line houses, but of the 42 service wholesalers with liquor departments, 5 dropped to lower 
groups while none moved up. 



TABLE C-NUMBER OF ESTABLISHMENTS BY SIZE CLASSIFICATION; 1935 AND 1937 



Size of establishment 
(based on net sales) 



Total 
estab- 
lishments 
1935 



$2,000,000 
and over 
in 1937 



M-, 000, 000- 

1,999,999 

in 1937 



$500,000- 
999,999 
in 1937 



Under 

#500,000 

in 1937 



WITHOUT LIQUOR DEPARTMENTS 



Total 
$2,000,000 and over 


96 
11 


15 
11 


28. 


30 


23 


$1,000,000 - #1,999,999 


26 


4 


22 






$500,000 - $999,999 


29 




6 


23 




Under $500,000 


30 






7 


23 



WITH LIQUOR DEPARTMENTS 



Total 


42 


12 


20 


10 





$2,000,000 and over 


13 


12 


1 






$1,000,000 - #1,999,999 


23 




19 


4 




$500,000 - $999,999 


6 






_6 





Size of establishment 
(based on net sales) 



Total 
estab- 
lishments 
1935 



#500,000 
and over 
in 1937 



$200,000- 
499,999 
in 1937 



Under 

$200,000 

in 1937 



DRUGS (specialty lines) 



Total 


138 


17 


32 


89 


$500,000 and over 


13 


13 






$200,000 - $499,999 


25 


4 


21 




Under $200,000 


100 




11 


89 



Page 5 



TERMS OF SALE 

The Bureau of the Census collected information in this Survey for the first time on the usual 
terms of sale. Each cooperating establishment was asked to report its usual credit period and its customary 
cash discount rate, if any. In addition, sales for the year 1937 were to be analyzed to 'show "spot cash" 
business; credit sales 10 days or less; and credit of more than 10 days. Houses granting discounts for 
early payment of time sales were asked to report the percentage of their credit sales discounted in 1937. 
The results of these inquiries are presented in Tables D and E. Not all houses were able to supply the in- 
formation; hence, the number of establishments in these tables is less than the total number included in the 
Survey. 

Credit Period And Rate Of Discount 

Table D classifies 129 full-line service wholesalers (drug departments only), 144 specialty line 
houses, and 39 manufacturers' sales branches according to usual credit period and cash discount rate. It 
should be noted that these are the usual terms for the houses, and that either or both the credit period and 
the rate of discount may vary with the commodity sold and with the customer. Also the classification as 
given here represents the policy of the house from which practice may vary. In the drug trade 30 days is 
the usual credit period reported by 48 full -line wholesalers, 95 specialty line houses and by 26 manufac- 
turers' sales branches. However, extensions of 10 days, 15 days and 60 days are common. 

A cash discount of two percent is common in the drug trade although many houses allow only one per- 
cent and others vary the discount rate according to the line of merchandise or the customer. Many specialty 
line houses, 30 of the 144 studied, bill net. 

TABLE D. -ESTABLISHMENTS CLASSIFIED ACCORDING TO USUAL TERMS OF SALE 



Usual Credit Period 



Total 
Number of 

Estab- 
lishments 



Usual discount rate 



Net* 



138 



Zfo 



Combina- 
tion of 
rates ** 



Discount 

granted , 

rate not 

stated 



DRUGS (full-line) 
Liquor Department* Are Omitted 



Total 


129 




1/22 


2/37 


41 


29 


15 days 


3 


— 


— 


— 


— 


3 


30 days 


48 


— 


6 


15 


14 


13 


60 days 


11 


— 


4 


7 


— 





Periods not stated 


67 


~ 


12 


15 


27 


13 





DRUGS ( 


specialty lines) 








Total 

Cash 


144 
10 


30 
10 


S/30 


1/64 


7 


13 


10 days 


11 


8 


— 


— 


1 





30 days 


95 


10 


28 


50 


3 


4 


60 days 


16 


1 


2 


9 


1 


3 


Periods not stated 


12 


1 


— 


5 


2 


4 



MANUFACTURERS' SALES BRANCHES 



Total 


39 


__ 


5/ 8 


1/23 


8 


__ 


30 days 


26 


— 


7 


13 


6 


— 


60 days 


7 


— 


— 


7 


— 


— 


Periods not stated 


6 


— 


1 


3 


2 


— 



* Cash discount not usually granted. 

** Rate differs with commodity and customer. 

1/ 8 establishments reported their discount period as 10 days; 5 as 10th proximo; 1 as 15th 

proximo and 8 as 30 days. 
2/ 14 establishments reported their discount period as 10 days,' 20 as 10th proximo aDd 3 as 

30 days. 
3/ 23 establishments reported their discount period as 10 days; 3 as 15 days; 3 as 10th 

proximo and 1 as 30 days. 
4/ 54 establishments reported their discount period as 10 days; 1 as 15 days; 4 as 10th 

proximo and 5 as 30 days. 
5/ 7 establishments reported their discount period as 10 days and 1 as 10th proximo. 
6/ 16 establishments reported their discount period as 10 days; 2 as 10th proximo and 5 as 

15th proximo. 



Page 6 

Cash vs. Credit Sales 

The cash-credit division of 1937 sales is given in Table E. Drugs are usually sold on credit, as 
shown by the fact that 87.1 percent of the business of full-line wholesalers (drug departments only); 72.7 
percent for specialty line houses; and 98.8 percent of the sales of manufacturers' sales branches are on 
time for a period of more than 10 days. Spot cash business is small accounting for only 7.9 percent of the 
total for full-line wholesalers, 4.6 percent for specialty line houses, and 0.1 percent for manufacturers' 
sales branches. 



TABLE E. -CASH-CREDIT ANALYSIS OF SALES 
(Sales expressed in thousands oi dollars) 





Total 


Usual discount rate 


Usual Credit Period 


Net* 


1% 


2% 


Combina- 
tion of 
rates ** 


Discount 

granted , 

rate not 

stated 


DRUGS (full-line) 
Liquor Departments Are Omitted 


Number of establishments 
Net sales (1937) 


129 

$182,735 

14,482 

9,126 

159,127 

7.9 

5.0 

87.1 

.3) J 


Percent 


22 

$29,502 

1,807 

939 

26,756 

6.1 

3.2 

90.7 

of credi 

73.4 


37 

$41,097 


41 

$67,061 

5,789 

3,545 

57,727 

8.6 

5.3 

86.1 

discounted 

70.9 


29 
$45,075 


Spot cash 

Credit 10 days or less 
Credit more than 10 days 
Percent of net sales 
Spot cash 

Credit 10 days or less 
Credit more than 10 days 

Percent of credit sales 
discounted (weighted averaj 


2,882 

1,128 

37,087 

7.0 

2.7 

90.3 

t sales 

72.8 


4,004 

3,514 

37,557 

8.9 

7.8 
83.3 

79.0 


DRUGS (specialty lines) 


Number of establishments 
Net sales (1937) 


144 

$51,808 

2,396 

11,739 

37,673 

4.6 
22.7 
72.7 

;e) 

i 


30 

$4,750 
1,121 
1,852 
1,777 

23.6 
39.0 
37.4 

Percent 


30 

$25,015 

127 

1,167 

23,721 

0.5 

4.7 

94.8 

of credi 

83.7 


64 
$17,584 


7 

$1,236 

39 

172 

1,025 

3.2 
13.9 
82.9 

discounted 

82.7 


13 


Spot cash 

Credit 10 days or less 
Credit more than 10 days 
Percent of net sales 
Spot cash 

Credit 10 days or less 
Credit more than 10 days 

Percent of credit sales 
discounted (weighted averaf 


1,015 
6,626 
9,943 

5.8 
37.7 
56.5 

t sales 

69.1 


94 
1,922 
1,207 

2.9 
59.6 
37.5 

84.9 


MANUFACTURERS' SALES BRANCHES 


Number of establishments 
Net sales (1937) 


39 

$40,985 

31 

441 

40,513 

0.1 

1.1 

98.8 

e) 


Percent 


8 

$13,352 
3 

13,349 

100.0 
of credi 
93.1 


23 

$22 , 943 


8 

$4,690 

5 

74 

4,611 

0.1 

1.6 
93.3 

discounted 

94.9 


— — 


Spot cash 

Credit 10 days or less 
Credit more than 10 days 
Percent of net sales 
Spot cash 

Credit 10 days or less 
Credit more than 10 days 

Percent of credit sales 
discounted (weighted avera* 


23 

367 

22,553 

0.1 

1.6 

98.3 

t sales 

71.2 





fage 8 


























IcENSUS SURVEY OF BUSINESS: 19373S 












WHOLESALE 


DISTRIBUTION 


| 




DRUGS AND DRUG SUNDRIES 












TABLE 


1 -NET SALES BY QUARTERS: 1937 AND FIRST HALF OF 1938 










FOR IDENTICAL 


ESTABLISHMENTS BY GEOGRAPHIC DIVISIONS 












Sample 


No OF 






Net Sales By Ouarters 




Percent 




Based on 


Estab 


Net 




(»dd 


000) 






Change 


KIND OF BUSINESS 


1935 


t.lSH. 


Sales 
Year 
1937 






























AND 
DIVISION 


Census 


MF.NTS 




1937 




1938 


1st Qr. 


2ndQr 


Estab- 
lish- 
ments 

% 


*• 

Net 

Sales 

% 


Rf.port 

■ INC, 


1st Qr 


2nd Qr 


3RD Qr 


4th Qr 


1ST Qr. 


2nd Qr 


1937 

To 

1ST Qr 

1938 


1937 
To 




1937-38 

Survey 


1 .J.I OOO 1 


Jan. 1 
Mar. 31 


April 1 
June 30 


July 1 
Sept 30 


Oct 1 
Dec. 31 


Jan 1 
Mar. 31 


April 1 
June 30 


2ndQr 
1938 




SERVICE AND LIMITED-FUNCTION 


WHOLESALERS 












Drugs Ifull-line), Total 
Service aholesalers 


50 


61 


148 


$241,722 


#59,697 


Jl.57,347 


#59,467 


#65,211 


#57,015 


#54,855 


- 4.5 


- 4.3 


























Without liquor departments 


— 


— 


96 


112,599 


28,328 


26,890 


28,115 


29,266 


27,090 


25,753 


- 4.4 


- 4.2 


With liquor departments 1/ 


























Drug departments 


— 


— 


42 


[75,621 
[34,112 


18,873 


18,009 


19,138 


19,601 


17,853 


16,964 


- 5.4 


- 5.8 


Liquor departments 


— 


— 




7,683 


7,750 


7,373 


11,306 


7,384 


7,618 


- 3.9 


- 1.7 


C ^operatives and Mutusls 
Geographic Jivisions 


— 


— 


10 


19 , 390 


4,813 


4,698 


4,841 


5,038 


4,688 


4,520 


- 2.6 


- 3.8 


























Drug departments 


























New England 


30 


X 


7 


8,131 


2,083 


1,888 


2,163 


1,997 


1,869 


1,824 


-10.3 


- 3.4 


Middle Atlantic 


51 


74 


20 


41,279 


10,679 


9,927 


10,318 


10,355 


9,668 


9,370 


- 9.5 


- 5.6 


East North Central 


50 


56 


25 


38,975 


9,701 


9,364 


9,883 


10,025 


8,767 


6,342 


- 9.6 


-10.9 


West North Central 


41 


58 


13 


25,470 


6,298 


6,234 


6,520 


6,418 


6,028 


5,945 


- 4.3 


- 4.6 


South Atlantic 


60 


68 


32 


26 , 335 


6,845 


6,141 


6,360 


6,989 


6,696 


5,829 


- 2.2 


- 5.1 


3ast South Central 


56 


76 


15 


15,360 


3,888 


3,728 


3,792 


3,952 


3,618 


3,389 


- 6.9 


- 9.1 


West South Central 


53 


74 


16 


20,444 


5,007 


4,841 


5,239 


5,357 


4,940 


4,559 


- 1.3 


- 5.8 


Mountain 


59 


X 


10 


8,907 


2,208 


2,111 


2,283 


2,305 


2,209 


2,196 


0.0 


+ 4.0 


Pacific 


42 


50 


10 


22,711 


5,305 


5,363 


5,536 


6,507 


5,836 


5,7e3 


+10.0 


+ 7.8 


Liquor departments 


- 


" 


42 


34,112 


7,683 


7,750 


7,373 


11,306 


7,384 


7,618 


- 3.9 


- 1.7 


'Drugs and drug sundries 


























(specialty lines) 
Drug specialties 


13 


35 


160 


56,623 


13,908 


13,678 


12,940 


16,097 


13,029 


13,180 


- 6.3 


- 3.6 


16 


27 


55 


9,692 


2,621 


2,381 


2,366 


2,324 


2,019 


1,904 


-23.0 


-20.0 


Middle Atlantic 


17 


28 


20 


4,392 


1,308 


1,099 


983 


1,002 


732 


672 


-44.0 


-38.9 


East North Central 


20 


30 


12 


2,052 


525 


501 


516 


510 


487 


472 


- 7.2 


- 5.8 


South Atlantic 


15 


29 


6 


1,005 


251 


242 


258 


254 


260 


239 


+ 3.6 


- 1.2 


Bast South Central 


38 


43 


6 


473 


123 


115 


118 


117 


132 


124 


+ 7.3 


+ 7.8 


Other divisions 


10 


21 


11 


1,770 


414 


424 


491 


441 


408 


397 


- 1.5 


- 6.4 


Drug proprietories and toiletries 


11 


30 


69 


24,206 


5,705 


5,359 


5,476 


7,666 


5,069 


5,293 


-11.1 


- 1.2 


Middle Atlantic 


16 


38 


41 


16,326 


3,849 


3,500 


3,738 


5,239 


3,407 


3,571 


-11.5 


+ 2.0 


East North Central 


7 


11 


10 


2,083 


466 


397 


471 


749 


416 


391 


-10.7 


- 1.5 


Pacific 


10 


75 


8 


4,428 


977 


1,046 


986 


1,419 


891 


947 


- 8.8 


- 9.5 


All other divisions 


6 


9 


10 


1,369 


413 


416 


281 


259 


355 


384 


-14.0 


- 7.7 


Druggists sundries 


13 


52 


36 


22,725 


5,582 


5,938 


5,098 


6,107 


5,941 


5,983 


+ 6.4 


♦ 0.8 


Middle Atlantic 


16 


57 


19 


9,623 


2,366 


2,508 


2,213 


2,536 


2,406 


2,444 


+ 1.7 


- 2.6 


All other divisions 


10 


47 


17 


13,102 


3,216 


3,430 


2,885 


3,571 


3,535 


3,539 


+ 9.9 


+ 3.2 




IV 


lANUFACTURERS' 


SALES BR 


ANCHES 












Geographic Divisions 


























UNITED STATES 
Middle Atlantic 


20 


33 


54 


52,416 


15,203 


12,695 


12,148 


12,370 


13,507 


11,358 


-11.2 


-10.5 


19 


36 


18 


32,742 


9,423 


8,126 


7,663 


7,530 


6,404 


7,093 


-10.8 


-12.7 


East North Central 


21 


28 


11 


6,853 


1,984 


1,702 


1,515 


1,652 


1,672 


1,403 


-15.7 


-17.6 


West North Central 


23 


26 


6 


2,800 


751 


617 


703 


729 


699 


629 


- 6.9 


+ 1.9 


Pacific 


22 


36 


8 


4,241 


1,220 


976 


1,014 


1,031 


1,117 


981 


- 8.4 


+ 0.5 


All other divisions 


17 


32 


11 


5,780 


1,825 


1,274 


1,253 


1,428 


1,615 


1,252 


-11.5 


- 1.7 


+Increase - Decrease 




















* Percentages in this column represent 


1935 sales of 


establishments incluc 


ed in this 


lurvey, divided by tota 


J 1935 sale 


j of each 


classificatio 


1. 




\j Includes one cooperative. 




















X 1935 Figures withheld to avoid disclc 


sure. 


States Comprising C 


eographic Dil 


tslons: 












NEW ENCLAND-Conn., Maine, Mais., N. 


H., R. 1., VI. 






EAST SOUTH CENTR 


AL-Ala., Ky 


, Miss., Ten 


n. 






MIDDLE ATLANTIC-N. J., N. Y., Pa. 








WEST SOUTH CENTf 


AL-Ark., U 


., Okla., Te 


1. 






EAST NORTH CENTRAL-Ill, Ind., Mich., 


Ohia, Wis. 






MOUNTAIN— Ariz., Co 


0.. Idaho. M 


ont., Nev.. t\ 


. Mex., Utah 


. Wyo. 




WEST NORTH CENTRAL .Iowa, Kam., M 
SOUTH ATLANTIC-Del, D. C, Fla., Co., 


inn., Mo., Nebr., 


N. Dak., S. Dak. 




PACIFIC— Calif., Ortg., 


Wash. 










Md., N. C, S. C 


'., Va., W. Va. 

















Page 



Credit Sales Discounted 



i 



The extent to which, customers take advantage of cash discounts where allowed is also 
shown in Table E. Full-line wholesalers selling on a one percent basis granted discounts on 73.^ 
percent of their 1937 credit sales and those granting two percent allowed discounts on 72.8 per- 
cent of their business. Similarly, specialty line houses selling on a one percent basis discount 
ed S3. 7 percent of their sales and those on a two percent basis discounted 69.1 percent. 

- - 

The current Census Survey of Business includes retail as well as wholesale trade and is 
nation-wide in scope. It is being conducted by the Bureau of the Census with funds provided by 
the Works Progress Administration. The project is under the direction of Fred A. Gosnell, Chief 
Statistician, who was also in charge of previous Business Censuses. Wholesale trade reports are 
prepared under the immediate supervision of John Albright, assisted by James D. Lenig. 



I 



i 



Page 9 



CENSUS SURVEY OF BUSINESS: 1937-38 












WHOLESALE DISTRIBUTION 








DRUGS AND DRUG SUNDRIES 








TABLE 2 


.■■SALES, PAYROLL AND STOCKS: 


1937, 1936 AND 1935 






FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 






Sample 
Based on 

1935 
Census 


NO. OF 
ESTAB 




Net Sales 




Pay Roll"' 


Stocks On Hand 
End Of Year 


Percent Increase 

1935 to 1937 


KIND OF BUSINESS 

And 

DIVISION 


LISH 

MENTS 

Report 

-INC 
1937-38 




(add 000) 




(add 000 ) 


(add 000) 






Estab 

USH 
MENTS 


Net 
Sales 


1937 


1936 


1935 


1937 


1935 


1937 


1936 


1935 


Net 
Sales 


Pay 
Roll 


Stocks 




or, 


% 


Survey 


























SERVICE AND LIMITED-FUNCTION WHOLESALERS 


Drucs (full-line), Total 
Service ATiolesalers 


50 


61 


148 


8241,722 


S218.288 


$196,408 


$16,773 


J13.555 


$41,366 


1 39, 051 


$33,253 


23.1 


23.7 


24.4 






























Without liquor departments 


— 


— 


96 


112,599 


103,970 


96,443 


8,329 


7,140 


19,125 


17,408 


16,238 


16.8 


16.7 


17.8 


With liquor departments 1/ 






























Drug departments 
Liquor departments 


— 


— 


42 


{75,621 
\ 34, 112 


73,064 
23,723 


83,526 


5,814 
1,378 


5,492 


13,268 
6,243 


13,002 
6,127 


Il4,710 


31.4 


31.0 


32.6 


Cooperatives and Mutuels 
Geographic Divisions 


- 


-- 


10 


19,390 


17,531 


16,439 


1,252 


923 


2,730 


2,514 


2,305 


18.0 


35.6 


18.4 






























New England 






























Drue departments 
liquor departments 


30 


X 


7 


f 8,131 
1 1,299 


7,839 
758 


8,098 


554 
65 


554 


1,213 
231 


1,209 
196 


f 1,237 


16.4 


11.7 


16.7 


Middle Atlantic 






























Drug departments 
Liquor departments 


51 


74 


20 


| 41,279 
l 4.511 


39,927 
2,233 


38,861 


2,818 
167 


2,539 


5,526 
669 


5,208 
626 


] 5,494 


17. B 


17.6 


12.8 


East North Central 






























Drug departments 
Liquor departments 


50 


56 


25 


{ 38,973 
\ 4,881 


35,304 
3,312 


33,975 


2,860 
182 


2,462 


5,545 
622 


4,974 
609 


j 4,912 


29.1 


23.6 


25.5 


Neat North Central 






• 
























Drug departments 
Liquor departments 


41 


58 


13 


[25,470 
\ 3,662 


23,908 
2,994 


26,476 


2,032 
166 


1,910 


3,839 
603 


3,778 
641 


\ 4,188 


10.0 


15.1 


6.1 


South Atlantic 






























Drug departments 
Liquor departments 


60 


68 


32 


( 26, 335 
\ 4,508 


24,234 
3,080 


23,831 


1,948 
134 


1,601 


4,708 
870 


4,493 
751 


} 4,410 


29.4 


23.8 


26.5 


East South Central 






























Drug departments 
Liquor departments 


56 


76 


15 


| 15, 360 

\ 414 


14,306 
315 


13,157 


1,155 
17 


986 


2,508 
80 


2,439 
40 


} 2,329 


19.9 


18.9 


11.1 


West South Central 






























Drug departments 
Liquor departments 


53 


74 


16 


(20,444 
\ 6,220 


19,589 
4,176 


19,761 


1,567 
218 


1,381 


4,152 
1,473 


3,845 
1,215 


} 4,183 


34.9 


29.3 


34.5 


Mountain 






























Drug departments 
Liquor departments 


59 


X 


10 


f 8,907 
1 1.891 


8,283 

1,512 


8,741 


621 

60 


541 


1,844 
212 


1,594 
255 


} 1.591 


23.5 


25.9 


29.2 


Pacific 






























Drug departments 
Liquor departments 


42 


50 


10 


| 22, 711 
\ 6,726 


21,175 
5,343 


23,508 


1,940 
369 


1,581 


5,788 
1,483 


5,384 
1,794 


] 4,909 


25.2 


46.0 


48.1 


Drugs and drug sundries 
(specialty lines) 

Drug specialties 


13 


35 


160 


56,623 


51,473 


42,854 


5,591 


3,834 


4,760 


4,027 


4,888 


32.1 


45.8 


- 2.6 


16 


27 


55 


9,692 


8,902 


8,124 


855 


682 


1,420 


1,287 


1,263 


19.5 


25.4 


12 .4 


Middle Atlantic 


17 


28 


20 


4,392 


4,030 


3,550 


288 


196 


528 


436 


380 


23.7 


46.9 


38.9 


East North Central 


20 


30 


12 


2,052 


1,909 


1,770 


246 


206 


313 


293 


281 


15.9 


19.4 


11.4 


South Atlantic 


15 


29 


6 


1,005 


925 


995 


91 


75 


174 


167 


189 


1.0 


21.3 


- 7.9 


East South Central 


38 


43 


6 


473 


448 


411 


44 


46 


92 


95 


104 


15.1 


- 4.3 


-11.5 


All other divisions 


10 


21 


11 


1,770 


1,590 


1,398 


186 


159 


313 


296 


309 


26.6 


17.0 


1.3 


Drug proprietories and 
toiletries 


11 


30 


69 


24,206 


21,982 


18,495 


3,667 


2,331 


2,430 


2,242 


2,024 


30.9 


57.3 


20.1 


Middle Atlantic 


16 


38 


41 


16,326 


14,720 


11,991 


2,446 


1,460 


1,709 


1,520 


1,328 


36.2 


67.5 


28.7 


East North Central 


7 


11 


10 


2,083 


1,689 


1,310 


323 


154 


170 


163 


157 


59.0 


109.7 


8.3 


pacific 


10 


75 


8 


4,428 


4,219 


3,986 


714 


561 


417 


436 


427 


11.1 


27.3 


- 2.3 


All other divisions 


6 


9 


10 


1,369 


1,354 


1,208 


184 


156 


134 


123 


112 


13.3 


17.9 


19.6 


Druggists' sundries 


13 


52 


36 


22,725 


20,589 


16,235 


1,069 


821 


910 


498 


1,601 


40.0 


30.2 


-43.2 


Middle Atlantic 


16 


57 


19 


9,623 


6,002 


8,649 


340 


230 


279 


252 


979 


11.3 


47.8 


-71.5 


All other divisions 


10 


47 


17 


13,102 


14,587 


7,586 


729 


591 


631 


246 


622 


72.7 
1 


23.4 


1.4 








MANUFAC 


TURERS' 5 


>ALES BR/! 


INCHES 






Geoeraphic Divisions 






























UNITED STATES 
Middle Atlantic 


20 


33 


54 


52,416 


47,861 


42,917 


4,428 


3,599 


4,378 


3,547 


4,201 


22.1 


23.0 


4.2 


19 


36 


18 


32,742 


29,085 


25,754 


2,721 


2,059 


3,063 


2,452 


2,110 


27.1 


32.2 


45.2 


East North Central 


21 


28 


11 


6,853 


6,693 


5,897 


403 


364 


224 


206 


359 


16.2 


10.7 


-37.6 


West North Central 


23 


26 


6 


2,800 


2,592 


2,488 


354 


324 


296 


228 


396 


12.5 


9.3 


-25.3 


Pacific 


22 


36 


8 


4,241 


3,925 


3,346 


469 


380 


410 


302 


543 


26.7 


23.4 


-24.5 


All other divisions 


17 


32 


11 


5,780 


5,566 


5,432 


481 


472 


385 


359 


793 


6.4 


1.9 


-51.5 



- Decrease 

* Percentages in this column represent 1935 sales of establishments included in this survey, divided by total 1935 sales ol each classification. 
** Pay roll not available for year 1936. Pay roll includes compensation of hill time and part-time employees, but not of proprietors and firm members of 
unincorporated businesses. 

1/ Includes one cooDerative. 



Page 10 




















CENSUS SURVEY OF BUSINESS: 1937-38 

DRUGS AND DRUG SUNDRIES 


WHOLESALE DISTRIBUTION 


TABLE 3.-SIZE OF SAMPLE 






i\ 


1937 SURVEY COMPARED WITH 1935 CENSUS 






%\ 


ESTABLISHMENTS, SALES AND PAY ROLL, BY GEOGRAPHIC DIVISIONS 








Number Of 


Net Sales 


Pay Roll* 




KIND OF BUSINESS 


Establishments 


(add 000 ) 


( 


add 000) 






Included In 




1935 Sales Of 




1935 Pay Roll Of 


AND 




1937-38 




Those Included 




Those Included 


DIVISION 


1935 

Census 


Survey 


1935 

Census 


In 1937-38 Survey 


1935 
Census 


In 1937-38 Survey 




% 
Sample 




% 
Sample 




% 

Sample 






Number 




Amount 




Amount 


SERVICE AND LIMITED-FUNCTION WHOLESALERS 


Drugs (full-line), Total 

Geographic Divisions 


295 


148 


50 


1324,113 


$196,408 


61 


$22,465 


$13,555 


60 




















New England 


23 


7 


30 


X 


8,098 


z 


z 


554 


z 


Middle Atlantic 


39 


20 


51 


52,734 


38,861 


74 


3,457 


2,539 


73 


East North Central 


50 


25 


50 


61,157 


33,975 


56 


4,314 


2,462 


57 


West North Central 


32 


13 


41 


45,521 


26,476 


58 


2,997 


1,910 


64 


South Atlantic 


53 


32 


60 


35,202 


23,831 


68 


2,537 


1,601 


63 


East South Central 


27 


15 


56 


17,264 


13,157 


76 


1,286 


986 


77 


West South Central 


30 


16 


53 


26,672 


19,761 


74 


1,930 


1,381 


72 


Mountain 


17 


10 


59 


z 


8,741 


z 


z 


541 


z 


Pacific 


24 


10 


42 


47,192 


23,508 


50 


3,535 


1,581 


45 


Drugs and drug sundries 




















(specialty lines) 


1,268 


160 


13 


123,469 


* 42,854 


35 


12,420 


3,834 


31 


Drug specialties 


342 


55 


16 


29,554 


8,124 


27 


2,701 


682 


25 


Middle Atlantic 


116 


20 


17 


12,689 


3,550 


28 


942 


196 


21 


East North Central 


59 


12 


20 


5,810 


1,770 


30 


550 


206 


37 1 


South Atlantic 


39 


6 


15 


3,427 


995 


29 


364 


75 


21 i 


East South Central 


16 


6 


38 


952 


411 


43 


150 


46 


31 1 


All other divisions 


112 


11 


10 


6,676 


1,398 


21 


695 


159 


23 f 


Drug proprietories and toiletries 


641 


69 


11 


62,666 


18,495 


30 


7,434 


2,331 


31 


Middle Atlantic 


264 


41 


16 


31,377 


11,991 


38 


4,504 


1,460 


32 


East North Central 


142 


10 


7 


12,291 


1,310 


11 


1,201 


154 


13 


Pacific 


79 


8 


10 


5,317 


3,986 


75 


746 


561 


75 


All other divisions 


156 


10 


6 


13,681 


1,208 


9 


983 


156 


16 


*> 

Druggists sundries 


285 


36 


13 


31,249 


16,235 


52 


2,285 


821 


36 


Middle Atlantic 


117 


19 


16 


15,248 


8,649 


57 


967 


230 


24 


All other divisions 


168 


17 


10 


16,001 


7,586 


47 


1,318 


591 


45 


MANUFACTURERS' SALES BRANCHES 


Geographic Divisions 




















UNITED STATES 
Middle Atlantic 


270 


54 


20 


128,468 


42,917 


33 


13,566 


3,599 


27 


93 


18 


19 


71,572 


25,754 


36 


7,190 


2,059 


29 


East North Central 


52 


11 


21 


21,232 


5,897 


28 


2,138 


364 


17 


West North Central 


26 


6 


23 


9,439 


2,488 


26 


1,182 


324 


27 


Pacific 


36 


8 


22 


9,232 


3,346 


36 


1,130 


380 


34 


All other divisions 


63 


11 


17 


16,993 


5,432 


32 


1,946 


472 


24 


* Percentages in this column represent 1935 sales of establishments included in this survey, divided by total 


1935 sales o 


each classifi 


:ation. 


X 1935 Figures withheld to avoid disclosure. 








States Comprising Geographic Division*: 








NEW ENCLAND-Conn., Maine, Mass., N. H.. R. /.. Vt. EAST SOUTH CENTRAL-Ala., Kg., A 


fiS5., Tenn. 






MIDDLE ATLANTIC-N. J., N. Y., Pa. WEST SOUTH CENTRAL-Ark., La., ( 


>Ma., Tex. 






EAST NORTH CENTRAL-lil, Ind., Mich., Ohio, Wis. MOUNTAIN— Ariz., Colo., Idaho, Mont. 


Nev.. N. Mex. 


Utah, Who. 




WEST NORTH CENTRAL -Iowa, Kans., Minn., Mo., Nebr., N. Dak., S. Dak. PACIFIC— Calil., Oreg., Wash. 








SOUTH ATLANTIC .Del., D. C, Fla., Co., Md., N. C, S. C, Va., W. Va. 






1 



<i 



I 






1 



UNITED STATES DEPARTMENT OF COMMERCE 

Harry L. Hopkins, Secretary 

BUREAU OF THE CENSUS 

William L. Austin. Director 



CENSUS SURVEY OF BUSINESS: 1937-38 



WHOLESALE DISTRIBUTION 



DRY GOODS 




JANUARY, 1939 



» 



CENSUS SURVEY OF BUSINESS: 1937-38 
Wholesale Distribution 

DRY GOODS 



This is one of a series of final reports presenting the findings of the Census Survey of 
Business for the year 1937 and the first half of 1938. Contained herein are dollar sales of 790 iden- 
tical establishments — 730 service and limited-function wholesalers and 60 manufacturers' sales 
branches — for the years 1935, 1936, 1937 and the first half of 1938; pay roll for the years 1935 and 
1937; and the value of stocks on hand at the end of the years 1935, 1936 and 1937. Sales for the year 
1937 and the first half of 1938 are shown by quarters. As added features, changes in size of estab- 
lishments, 1935 to 1937, are shown; service and limited-function wholesalers and manufacturers' sales 
branches are classified according to their usual terms of sale; and sales for the year 1937 are ana- 
lyzed to show cash and credit business separately. 

This Survey, unlike regular Censuses of Business, is not intended to present a complete pic- 
ture of the wholesale dry goods business, but rather to provide a reliable indicator of trends since 
the last Census. It was conducted by mail from lists made up only of establishments included in the 
1935 Census, all new ones being omitted. Those with sales of less than $25,000 for the year 1935 were 
likewise omitted, as they account for only a negligible portion of the total business. Reporting was 
purely on a voluntary basis with only one reminder follow-up, hence, not all establishments contacted 
submitted returns. This report, in order to provide reliable trend information, is further limited to 
those establishments engaged primarily in selling dry goods at wholesale during the year 1935 and 
which still operate in a similar manner. 

Three Regular Censuses 

Three regular Censuses of Business have been taken covering the years 1929, 1933 and 1935 
respectively. Below is a comparison of the number of establishments and sales for each of the Census 
periods. 



Service and Limited- 
Function Wholesalers 



Manufacturers ' 
Sales Branches 



Period 



1929 Census 
1933 Census 
1935 Census 

Percent change 
1929 to 1933 
1933 to 1935 



Number of 






Number of 


estab- 




Net sales 


estab- Net sales 


lishments 






lishments 


3,719 


$1 


,686,835,000 


not available 


3,387 




846,323,000 


233 $115,132,000 


3,607 




935,400,000 


208 180,322,000 


- 8.9 




- 49.8 


not available 


+ 6.5 




♦ 16.4 


- 10.7 + 56.6 



Identical establishments in this Survey: 



1935 
1936 
1937 



730 
730 
730 



$322,906,000 
362,556,000 
376,797,000 



60 
60 

60 



$34,987,000 
37,525,000 
36,546,000 



Percent change, identical establishments 

1935 to 1936 

1936 to 1937 



+ 12.3 
+ 3.9 



+ 7.3 
- 2.6 



1935 to 1937 



+ 16.7 



4.5 



1937 Compared With 1935 

Of the 730 service and limited-function wholesalers included in this Survey, 89 are classi- 
fied as full-line wholesalers and 641 as specialty line houses (including notions, piece goods, and 
'miscellaneous dry goods). Percentage increases, 1937 over 1935, in sales, pay roll, and end of year 



Page 2 

inventories are given below for each type of establishment. It is interesting to note that pay roll 
shows larger relative increases than sales. For all service and limited-function wholesalers combined 
pay roll was up 22.5 percent as compared with a 16.7 percent in sales. Similar ratios for specialty 
line houses were 30.5 percent in pay roll and 19.4 percent for sales, while pay roll of manufacturers* 
sales branches show a rise of 12.9 percent and for sales 4.5 percent. Only in the case of full-line 
houses did sales rise more than pay roll, 9.7 percent for sales as compared with 7.5 percent for pay 
roll. 



« 



Percent increase, 1937 over 1935 



Total (730 establishments) 

89 Full-line establishments 

641 Specialty line establishments 
. 188 Notion houses 
397 Piece goods houses 
56 All other houses 



Net sales 


Pay roll 


(end of year) 


16.7 


22.5 


11.5 


9.7 


7.5 


15.0 


19.4 


30.5 


10.2 


10.2 


34.3 


15.6 


21.8 


29.7 


8.9 


5.9 


13.8 


16.6 



60 Manufacturers*' sales branches 



4.5 



13.3 



31.2 



Quarterly Sales, 1937 and First Half of 1938 

A measure of the short term trend in the wholesale dry goods business is given in terms of 
quarterly sales for 1937 and the first half of 1938. Quarterly sales by geographic divisions are 
shown in Table 1. The summary for the United States follows: 



Service and Limited -Function Wholesalers 



Period 



Number of establishments 



1st Qr. 


1937 


2nd Qr. 


1937 


3rd Qr. 


1937 


4th Qr. 


1937 


1st Qr. 


1938 


2nd Qr. 


1938 



1st Qr. 1938 vs. 1st Qr. 1937 
2nd Qr. 1938 vs. 2nd Qr. 1937 



Full-line 



Net sales 
(add 000) 



89 

$23,940 
22,540 
27,724 
24,013 

18,709 

17,847 



- 21.9 

- 20.8 



(1) 



Specialty lines 



Net sales 
(add 000) 



641 

$86,153 

5.8 65,882 

23.0 68,978 

- 13.4 57,567 



(1) 



- 23.5 
+ 4.7 

- 16.5 



- 22.1 62,408 + 8.4 
4.6 49,666 - 20.4 

Percent change 



- 27.6 

- 24.6 



(1) Percentage change from preceding quarter. 



Manufacturers' 
Sales Branches 



Net sales 
(add 000) 



60 

$11,116 
9,244 
8,914 
7,272 

7,816 
6,247 



29.7 
32.4 



t 



(1) 



- 16.8 

- 3.6 

- 18.4 

+ 7.5 

- 20.1 



Percent Sample 

The 89 full-line establishments in this Survey represented 29 percent of the number and ac- 
counted for 34 percent of the business of all such houses in 1935, and the 641 specialty line whole- 
salers constitute a sample of 19 percent in number and 32 percent in sales. Similarly, the sample 
for manufacturers' sales branches is 29 percent in number and 19 percent in sales. 

Table 3, attached, measures the size of the sample in terms of the 1935 Census. In this 
table the number of those included, together with 1935 sales and pay roll, is compared by geographic 
divisions with the totals in 1935. For convenience in using the information the percent sample of 
establishments and sales, is reproduced in Tables 1 and 2. 

Table 2 presents comparable information by geographic divisions on sales and inventories of 
730 service and limited-function wholesalers and 60 manufacturers' sales branches for the years 1935, 
1936 and 1937, and on pay roll for the years 1935 and 1937. 



i 



Page 3 



SIZE OF ESTABLISHMENT 

Of the 641 specialty line houses studied, 415 are classified as wholesale merchants 
of the conventional type, 120 as converters, 11 as exporters, 92 as importers and 3 as limited- 
function wholesalers. The 415 wholesale merchants together with the 89 full-line service 
wholesalers are arranged according to their 1935 size in Table A, below, where their number and 
sales are compared by size classification with all wholesale merchants in 1935. 

As might be expected, a greater percentage of the larger establishments reported for 
this Survey than smaller ones. For example, 8 of the 22 houses, or 36 percent, with sales of 
$2,000,000 and over and 11 of the 28 establishments, 39 percent, in the $1,000,000 - $1,999,999 
bracket are included as compared with only 52 of the 211 merchants, 25 percent, in the under- 
$500,000 classification. The sample of full-line wholesalers is largest in the $500,000 - 
$999,999 group where 43 percent of the total are included. For specialty line houses the sample 
is also largest in the upper brackets and decreases with size. 

TABLE A. -SAMPLE BY SIZE OF ESTABLISHMENT 
( Wholesale merchants only ) 



FULL-LINE 



Size of establishment 


Number of 
establishments 


Net sales - 1935 
(add 000) 


Percent sample 


(Net sales in 1935) 


1935 
Census 


1937-3e 
Survey 


1935 
Census 


1937-38 
Survey 


Estab- 
lishments 


Met 
sales 


Total 
$2,000,000 and over 
$1,000,000 - $1,999,999 
$500,000 - $999,999 
Under $500,000 


303 
22 
28 
42 

211 


89 

8 

11 

18 

52 


$262,615 

156,792 

38,256 

32,310 

35,257 


$89,540 
47,124 
16,452 
14,758 
11,206 


29 
36 
39 
43 
25 


34 

30 
43 
46 
32 







SPECIALTY LINES 








Total 


2,279 


415 
16 


$347 , 933 
98,336 


$101,465 
33,474 


18 
32 


29 


$1,000,000 and over 


50 


34 


$500,000 - $999,999 


94 


27 


64,018 


17,576 


29 


27 


$300,000 - $499,999 


139 


36 


53,124 


13,250 


26 


25 


$100,000 - $299,999 


469 


142 


79,333 


24,342 


30 


31 


Under $100,000 


1,527 


194 


53,072 


12,823 


13 


24 



Increases by Size, 1937 over 1935 

Percentage increases in sales, pay roll and stocks — 1937 over 1935 — are given by 
size groups in Table B, for 89 full-line wholesalers and 415 wholesale merchants handling 
selected lines. In general, the smaller establishments, full-line houses with sales of less 
than $1,000,000 and specialty line merchants whose sales in 1935 did not exceed $300,000, 
fared better than the larger ones. Sales of full-line houses in the under-$500,000 classifica- 
tion increased 7.5 percent and those in the $500,000 - $999,999 group increased 17.5 percent as 
compared with a gain of only 4.1 percent for the $1,000,000 - $2,000,000 bracket and 9.7 per- 
cent for those $2,000,000-and-over. For specialty houses the largest gain in sales is found in 
the under-$100,000 classification (21.3$) while the smallest (0.6$) appears for the $500,000 - 
$999,999 bracket. It is significant to note that pay roll increased more than sales for each 
size classification of specialty line merchants. 



Page 4 



TABLE B. -INCREASES IN SALES, PAY ROLL AND STOCKS, 1937 OVER 1935, 
BY SIZE OF ESTABLISHMENT 



Size of establishment 
(Net sales in 1935) 



Number of 
establishments 



Percent increase, 1937 over 1935 



Sales 



Pay roll 



Stocks 
(end of year) 



FULL-LINE 



Total 
$2,000,000 and over 
$1,000,000 - $1,999,999 
$500,000 - $999,999 
Under $500,000 




9.7 
9.7 
4.1 
17.5 
7.5 



7.5 



15.0 



2.0 


15.4 


21.0 


21.2 


11.7 


16.8 


8.7 


5.4 



SPECIALTY LINES 



Total 


415 


14.9 


28.6 


15.7 


$1,000,000 and over 


16 


19.1 


27.2 


17.1 


$500,000 - $999,999 


27 


0.6 


11.7 


- 2.4 


$300,000 - $499,999 


36 


6.5 


13.4 


22.7 


$100,000 - $299,999 


142 


20.6 


22.6 


17.0 


Under $100,000 


194 


21.3 


72.5 


24.5 



Changes of establishment from one size bracket to another, 1935 to 1937, are shown 
in Table C. In keeping with the general increase in sales, the trend was from the lower to 
the upper groups. For example, 10 of the 89 full-line houses were in the $2,000,000 and over 
bracket in 1937 as compared with 8 in 1935. On the other hand, 52 establishments had sales 
of less than $500,000 in 1935 as compared with 49 in 1937. A total of 13 establishments moved 
up in classification, while one dropped to a lower group. A similar trend is noted for the 
specialty line houses with 67 establishments moving up in classification and 22 dropping to 
lower groups. 



TABLE C. --NUMBER OF ESTABLISHMENTS BY SIZE CLASSIFICATION; 1935 AND 1937 



Size of establishment 
(Net sales in 1935) 



Total 
establishments 
1935 



£2, 000, 000 

and over 

in 1937 



$1,000,000- 

$1,999,999 

in 1937 



4500,000- 

$999,999 

in 1937 



Under 

$500,000 

in 1937 



FULL-LINE 



Total 
$2,000,000 and over 


89 
8 


10 

8 


16 


14 


49 


$1,000,000 - $1,999,999 


11 


2 


8 


1 




$500,000 - $999,999 


18 




8 


10 




Under $500,000 


52 






3 


49 



SPECIALTY LINES 



Size of establishment 
(Net sales in 1935) 


Total 
establishments 
1935 


$1,000,000 

and over 

in 1937 


$500,000- 

$999,999 

in 1937 


$300,000- 

$499,999 

in 1937 


$100,000- 

$299,999 

in 1937 


Under 

$100,000 

in 1937 


Total 
$1,000,000 and over 
$500,000 - $999,999 
$300,000 - $499,999 
$100,000 - $299,999 
Under $100,000 


415 

16 

27 

36 

142 

194 


17 
16 

1 


31 

22 
4 
4- 

1 


38 

2 
22 
14 


169 

2 

8 

117 

42 


160 

2 

7 

151 



» 



Page 5 



TERMS OF SALE 



The Bureau of the Census collected information in this Survey for the first time on the usual terms 
of sale. Each cooperating establishment was asked to report its usual credit period and its customary cash 
discount rate, if any. In addition, sales for the year 1937 were to be analyzed to show "spot cash" busi- 
ness; credit sales 10 days or less; and credit of more than 10 days. Houses granting discounts for early 
payment of time sales were asked to report the percentage of their credit sales discounted in 1937. The re- 
sults of these inquiries are presented in Tables D and E. Not all houses were able to supply the informa- 
tion, hence, the number of establishments in these tables is less than the total number included in the 
Surrey. 

Credit Period And Rate Of Discount 



Table D classifies 78 full-line wholesalers, 592 specialty line houses and 55 manufacturers' sales 
branches according to usual credit periods and cash discount rates. It should be noted that these are the 
usual terms for the houses, and that either or both the credit period and the rate of discount may vary with 
the commodity sold and with the customer. Also the classifications as given here represent the policy of 
the houses from which practice may vary. 



Sixty days is the most common credit period for the full-line houses, while the number of specialty 
line houses selling on a 30 day basis slightly exceeded the number granting credit for a period of 60 days, 
210 as compared with 184. The number of manufacturers' sales branches is about equally divided between 30 
days and 60 days. Many houses (10 full-line wholesalers and 129 specialty line merchants) vary the credit 
period according to the line of goods sold or the customer. 

A cash discount of 2 percent is usually granted although 131 specialty line houses and 7 manufac- 
turers' sales branches reported that they bill net, and 31 full-line houses and 126 specialty line whole- 
salers offer a variety of discounts, no one rate predominating. 



I 



TABLE D. -ESTABLISHMENTS CLASSIFIED ACCORDING TO USUAL TERMS OF SALE 



Usual Credit Period 



Total 
number of 

estab- 
lishments 



Usual discount rate 



Net' 



2% 



Other 
rates 



Combina- 
tion of 

rates** 



FULL-LINE 



SPECIALTY LINES 



MANUFACTURERS' SALES BRANCHES 



Total establishments 
30 days 
60 days 



55 
28 
27 



i/39 
22 
17 



5/_9_ 
9 



* 



Discount 

granted, 

rate not 

stated 



Total establishments 


78 


__ 


1/39 


__ 


31 


8 


30 days 


12 


— 


8 


— 


4 


— 


60 days 


42 


— 


23 


— 


17 


2 


Combination of periods*** 


10 


— 


— 


— 


10 


— 


Periods not stated 


14 


— 


8 


~ 


— 


6 



Total establishments 


592 


131 


2/215 


5/79 


126 


41 


Cash 


6 


6 


— 


— 


— 


— 


30 days 


210 


20 


113 


53 


16 


8 


60 days 


184 


59 


79 


20 


16 


10 


Combination of periods*** 


129 


33 


— 


— 


92 


4 


Periods not stated 


63 


13 


23 


6 


2 


19 



Cash discounts not usually granted. 

Rates differ with commodity and customer. 
*** Period differs with commodity and customer. 

1/ 22 establishments reported their discount period as 10 days, 5 as 30 days and 12 as 60 days. 
Zj 172 establishments reported their discount period as 10 days, 2 as 15 days, 25 as 30 days, 15 as 60 days, 
m and 1 as 90 days. 
]/ 69 establishments reported their discount period as 10 days, 6 as 30 days, 1 as 60 days, and 3 as 90 days 

30 establishments reported their discount period as 10 days and 9 as 10th proximo. 

All establishments reported their discount period as 10 days. 



1/ 
1/ 



Page 6 



Cash vs. Credit Sales 

The cash -credit division of 1937 sales is given in Table S. Dry goods are usually sold 
on credit for a period of more than 10 days as shown by the fact that 94.5 percent of the busi- 
ness of full-line merchants; 93.1 percent of the sales of specialty line houses, and 99.8 percent 
cf the business of manufacturers' sales branches is on this basis. Spot cash sales are small ac- 
countirg for only 4.6 percent of the total for full-line merchants, 1.8 percent for specialty 
line houses and 0.2 percent for manufacturers' sales branches. 



TABLE E. -CASH-CREDIT ANALYSIS OF SALES 
(Sales expressed in thousands of dollars) 



Usual Credit Period 



Total 



Usual discount rate 



ITet 



236 



Other 
rates 



Combina- 
tion of 
rates 



Discount 

granted, 

rate not 

stated 



FULL-LINE 



dumber cf establishments 


78 




39 




31 


g 


Net sales (1937) 


194,327 

4,333 




$32,802 
1,071 




$59,855 


$1,669 


Spot cash 


3,097 


165 


Credit 10 days or less 


864 




439 




417 


8 


Credit more than 10 days 


89,130 




31,292 




56,342 


1,496 


Percent of net sales 














Snot cash 


4.6 




3.3 




5.2 


9.9 


Credit 10 days or less 


0.9 




1.3 




0.7 


0.5 


Credit more than 10 days 


94.5 




95.4 




94.1 


89.6 



Percent cf all credit sales 
discounted (weighted average) 



Percent of credit sales discounted 



:5.c 



53.8 



66.6 



SPECIALTY LINES 



Number of establishments 


592 


131 


215 


79 


126 


41 


Net sales (1937) 


?259,070 


$31,825 


$117 , 643 


$24,780 
132 


$69 , 942 
571 


$14,875 


Spot cash 


4,640 


2,221 


1,293 


423 


Credit 10 days or less 


13,285 


1,065 


8,958 


1,256 


1,636 


360 


Credit more than 10 days 


241,145 


28,539 


107,387 


23,392 


67,735 


14,092 


Percent of net sales 














Snot cash 


1.8 


7.0 


1.1 


0.5 


0.8 


2.8 


Credit 10 days or less 


5.1 


3.3 


7.6 


5.1 


2.3 


2.4 


Credit more than 10 days 


93.1 


89.7 


91.3 


94.4 


96.9 


94.8 



rercent cf all credit sales 
discounted (weighted average | 



Percent of credit sales discounted 
57.2 72.2 I 65.5 I 23.2 



MANUFACTURERS' SALES BRANCHES 



Number cf establishments 


55 


7 


39 


9 




Net sales (1937) 


•$28,227 
' 64 


$1,036 


£21,372 


$5,819 




Spot cash 


43 


21 




Credit 10 days or less 


6 


— 


6 


— 




Credit more than 10 days 


28,157 


1,036 


21,323 


5,798 




Percent of net sales 












Spot cash 


0.2 


— 


0.2 


0.4 




Credit 10 days or less 


0.0 


— 


0.0 


— 




Credit more than 10 days 


99.8 


100.0 


99.8 


99.6 





Percent of credit sales discounted 



rercent of all credit sales 
discounted (weighted average) 



79.0 



20.6 



Page 7 



Credit Sales Discounted 

The extent to which customers take advantage of cash discounts where allowed Is also 
shown In Table E. Full-line wholesalers selling on a two percent basis granted discounts on 
58.5 percent of their 1937 credit sales. Similarly, specialty line houses selling on a two 
percent basis discounted 57.2 percent and manufacturers' sales branches 79.0 percent of their 
1937 business. 

- - 

The current Census Survey of Business includes retail as well as wholesale trade and 
is nation-wide in scope. It is being conducted by the Bureau of the Census with funds provided 
by the Works Progress Administration. The project is under the direction of Fred A. G-osnell, 
Chief Statistician, who was also in charge of previous Business Censuses. Wholesale trade re- 
ports are prepared under the immediate supervision of John Albright, assisted by James E. Lenis. 



( 



Page 8 
























IF 


CENSUS SURVEY OF BUSINESS: 1937-38 










WHOLESALE DISTRIBUTION 








DRY GOODS 






w 


TABLE 1 -NET SALES BY QUARTERS: 1937 AND FIRST HALF OF 1938 






FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 




' 




Size Of 


















Sample 


No. Of 






Net Sales By Quarters 




Percent 


KIND OF BUSINESS 

AND 

DIVISION 


Compared 

With 1935 

Census 


Estab- 
lish- 
ments 
Includ- 
ed In 


Net 
Sales 
Year 
1937 




(add 000 ) 






Change 


1937 


1938 


ist Qr. 

1937 
To 


2ND QR 
1937 
To 


Estab- 
lish- 


Net. 


1ST QR. 


2ND QR. 


3RD QR. 


4TH QR. 


1st Qr. 


2nd Qr. 




ments 


Sales 


1937-38 

Survey 




Jan. 1 


April 1 


July 1 


Oct. 1 


Jan. 1 


April 1 


1st Qr 


2nd Qr. . 




% 


% 


(add 000 ) 


Mar. 31 


June 30 


Sept. 30 


Dec. 31 


Mar. 31 


June 30 


1938 


1938 




SERVICE AND 


LIMITED-FUNCTION 


WHOLESALERS 






UNITED STATES 
Dry goods (full line) 


20 


33 


730 


§376,797 


$110,093 


|88,422 


$96,702 


$81,580 


$81,117 


$67,513 


-26.3 


-23.6 


29 


34 


89 


98,217 


23,940 


22,540 


27,724 


24,013 


18,709 


17,847 


-21.9 


-20.8 


Dry goods (specialty lines) 


























Not ions 


21 


40 


188 


42,956 


11,896 


9,930 


11,043 


10,087 


9,519 


8,179 


-20.0 


-17.6 


Piece goods 


21 


32 


397 


228,323 


72,375 


54,222 


56,054 


45,672 


51,589 


40,134 


-23.7 


-25.9 


All other 

Geographic Divisions 


11 


24 


56 


7,301 


1,882 


1,730 


1,881 


1,808 


1,300 


1,303 


-30.9 


-24.7 


























Dry goods (full line) 


























Middle Atlantic 


23 


22 


15 


9,993 


2,211 


2,476 


2,587 


2,719 


1,663 


1,846 


-24.8 


-25.4 : 


East North Central 


26 


42 


7 


32 , 588 


8,250 


7,842 


8,592 


7,904 


6,275 


6,075 


-23.9 


-22.5 
- 7.7 


West North Central 


44 


18 


11 


11,948 


2,743 


2,536 


3,689 


2,980 


2,392 


2,342 


-12.8 


South Atlantic 


30 


35 


21 


12,406 


2,966 


2,746 


3,499 


3,195 


2,306 


2,040 


-22.3 


-25.7 


East South Central 


30 


44 


14 


9,384 


2,507 


1,890 


2,818 


2,169 


1,954 


1,555 


-22.1 


-17.7 


West South Central 


22 


41 


8 


10,525 


2,539 


2,182 


3,337 


2,467 


2,085 


1,822 


-17.9 


-16.5 


Other divisions 


34 


58 


13 


11,373 


2,724 


2,868 


3,202 


2.579 


2,033 


2,167 


-25.4 


-24.4 


Dry goods (specialty lines) 
























A 


Notions 
























• 


Middle Atlantic 


22 


42 


154 


39,187 


10,940 


9,009 


10,082 


9,156 


8,682 


7,366 


-20.6 


-18.2 1 


East North Central 


19 


25 


18 


1,638 


417 


404 


434 


383 


333 


338 


-18.9 


-16.3 1 


Other divisions 


14 


39 


16 


2,131 


539 


517 


527 


548 


499 


475 


- 7.4 


- 8.1 ! 


Piece goods 


























New England 


17 


17 


16 


3,951 


1,223 


886 


1,006 


836 


912 


564 


-25.4 


-36.3 I 


Middle Atlantic 


21 


32 


312 


203,478 


64,610 


48,170 


50,026 


40,672 


46,364 


36,263 


-28.2 


-24.7 I 
-41 .8 1 


East North Central 


22 


35 


21 


8,483 


2,725 


2,144 


2,041 


1,573 


1,626 


1,248 


-40.3 


South Atlantic 


13 


16 


4 


912 


271 


275 


178 


188 


199 


180 


-26.6 


-34.5 


Pacific 


36 


44 


38 


9,799 


3,054 


2,245 


2,421 


2,079 


2,172 


1,632 


-28.9 


-27 .3 | 


Other divisions 


19 


24 


6 


1,700 


492 


502 


382 


324 


316 


297 


-35.8 


-40.8 1 


All other 


























Middle Atlantic 


12 


25 


40 


5,750 


1,499 


1,370 


1,475 


1,406 


1,022 


1,022 


-31.8 


-25.4 


East North Central 


14 


24 


9 


704 


177 


168 


176 


183 


119 


119 


-32.8 


-29.2 


Other divisions 


8 


22 


7 


847 


206 


192 


230 


219 


159 


162 


-22.8 


-15.6 






manuf; 


>lCTURERS' SALES b 


RANCHES 






Dry goods (specialty lines) 
Middle Atlantic 


29 


19 


60 


36,546 


11,116 


9,244 


8,914 


7,272 


7,816 


6,247 


-29.7 


-32.4 


18 


13 


20 


21,140 


6,341 


5,039 


5,275 


4,485 


4,270 


3,138 


-32.7 


-3". 7 [ 


East North Central 


44 


47 


15 


5,380 


1,798 


1,470 


1,162 


950 


1,082 


924 


-39.8 


-37.1 1 


Pacific 


36 


47 


12 


3,817 


1,002 


1,136 


917 


762 


918 


976 


- 8.4 


-14.1 1 


Other divisions 


43 


57 


13 


6,209 


1,975 


1,599 


1,560 


1,075 


1,546 


1,209 


-21.7 


-24.4 1 


— Decrease 














* Percentages in this column represen 


t 1935 sales of 


establish 

Stale: 


ments included in this 

Comprising Geographic D 


survey, divided by total 1935 Si 


lies of each 


classification. 


NEW ENGLAND-Conn., Maine, Mass., 


N. H.. R. /.. VI. 






EAST SOUTH CENTRAL -Aid., Ki 


., Miss., Ten 


n. 


MIDDLE ATLANTIC-N. J., N. Y., Pa. 








WEST SOUTH CENTRAL-Ark., L 


i„ Ohio., Te 


t. 


EAST NORTH CENTRAL-llL, Ind., Ml 


h.. Ohio, Wis. 






MOUNTAIN— Ariz., Colo.. Idaho. M 


on!., Nei>., A 


. Mex., Utah. Wyo. 


WEST NORTH CENTRAL-lowa, Kans., 


Minn., Mo., Neb 


., N. Dak., 


S. Dak. 


PACIFIC— Calif., Orcg.. Wash. 






SOUTH ATLANTIC .Del., D. C, Fla., C 


a., Mi.. N. C, < 


. C, Va., 


W. Va. 






II 





























Page 9 



CENSUS SURVEY OF BUSINESS: 1937-38 






WHOLESALE DISTRIBUTION 






DRY GOODS 










TABLE 2.-- SALES, PAY ROLL AND STOCKS: 1937, 1936 AND 1935 








FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 






Size 


Of 
















Sample 
Compared 


No. Of 

ESTAB 


Net Sales 


Pay Roll" 


Stocks On Hand 


Percent Increase 




LISH- 






End Of Year 


1935 10 1937 


KIND OF BUSINESS 


With 


1935 












AND 


Census 


MENTS 

Includ- 


(add 000) 


(add 000) 




(add OOO) 




DIVISION 


ESTAB. 




























LISH 
MENTS 

% 


NET' 
Sales 


ed In 
1937-38 
Survey 


1937 


1936 


1935 


1937 


1935 


1937 


1936 


1935 


Net 
Sales 


Pay 

Roll 


Stocks 


SERVICE AND LIMITED- FUNCTION WHOLESALERS 


UNITED STATES 
Dry goods (full line) 


20 


33 


730 


$376,797 


$362,556 


$322,906 


$28,257 


$23,072 


$65,007 


$61,891 


$58,281 


16.7 


22.5 


11.5 


29 


34 


89 


98,217 


96,592 


89,540 


8,642 


8,037 


18,114 


17,207 


15,746 


9.7 


7.5 


15.0 


Dry goods (specialty lines) 






























Notions 


21 


40 


188 


42,956 


43,288 


38,996 


6,064 


4,515 


8,402 


7,573 


7,269 


10.2 


34.3 


15.6 


Piece goods 


21 


32 


397 


228,323 


214,971 


187,477 


12,865 


9,917 


37,259 


35,862 


34,209 


21.8 


29.7 


8.9 


All other 

Geographic Divisions 


11 


24 


56 


7,301 


7,705 


6,893 


686 


603 


1,232 


1,249 


1,057 


5.9 


13.8 


16.6 






























Dry goods (full line) 






























Middle Atlantic 


23 


22 


15 


9,993 


9,930 


8,755 


970 


706 


1,902 


1,743 


1,720 


14.1 


37.4 


10.6 


East North Central 


26 


42 


7 


32,588 


31,471 


29,517 


2,847 


2,785 


4,613 


4,497 


4,053 


10.4 


2.2 


13.8 


West North Central 


44 


18 


11 


11,948 


11,839 


11,683 


1,140 


1,114 


2,251 


2,008 


2,020 


2.3 


2.3 


11.4 


South Atlantic 


30 


35 


21 


12,406 


12,582 


11,035 


1,153 


1,058 


2,656 


2,376 


2,099 


12.4 


9.0 


26.5 


East South Central 


30 


44 


14 


9,384 


9,582 


9,705 


884 


799 


1,781 


1,832 


2,035 


-3.3 


10.6 


-12.5 


West South Central 


22 


41 


8 


10,525 


10,335 


8,992 


780 


767 


2,013 


2,427 


1,598 


17.0 


1.7 


26.0 


Other divisions 


34 


58 


13 


11,373 


10,853 


9,853 


868 


808 


2,898 


2,324 


2,221 


15.4 


7.4 


30.5 


Dry goods (specialty lines) 






























Notions 






























Middle Atlantic 


22 


42 


154 


39,187 


39,688 


35,585 


5,610 


4,105 


7,633 


6,860 


6,564 


10.1 


36.7 


16.3 


East North Central 


19 


25 


18 


1,638 


1,555 


1,329 


161 


125 


288 


255 


210 


23.3 


28.8 


37.1 


Other divisions 


14 


39 


16 


2,131 


2,045 


2,082 


293 


285 


481 


458 


495 


2.4 


2.8 


- 2.8 


Piece goods 






























New England 


17 


17 


16 


3,951 


3,392 


2,798 


160 


133 


496 


400 


334 


41.2 


20.3 


48.5 


Middle Atlantic 


21 


32 


312 


203 , 478 


190,836 


166,220 


11,112 


8,651 


33,406 


31,792 


31,019 


22.4 


28.4 


7.7 


East North Central 


22 


35 


21 


8,483 


8,195 


7,170 


577 


377 


1,140 


1,293 


876 


18.3 


53.1 


30.1 


South Atlantic 


13 


16 


4 


912 


855 


709 


43 


47 


300 


227 


220 


28.6 


- 8.5 


36.4 


Pacific 


36 


44 


38 


9,799 


9,987 


9,113 


830 


591 


1,621 


1,789 


1,473 


7.5 


40.4 


10.0 


Other divisions 


19 


24 


6 


1,700 


1,706 


1,467 


143 


118 


296 


361 


287 


15.9 


21.2 


3.1 


All other 






























Middle Atlantic 


12 


25 


40 


5,750 


6,144 


5,444 


472 


418 


882 


932 


736 


5.6 


12.9 


19.8 


East North Central 


14 


24 


9 


704 


712 


635 


93 


81 


114 


110 


108 


10.9 


14.8 


5.6 


Other divisions 


8 


22 


7 


847 


849 


814 


121 


104 


236 


207 


213 


4.1 


16.3 


10.8 


MANUFACTURERS' SALES BRANCHES (with stock.) 


Dry goods (specialty lines) 
Middle Atlantic 


29 


19 


60 


36,546 


37,525 


34,907 


2,714 


2,396 


6,448 


5,192 


4,915 


4.5 


13.3 


31.2 


18 


13 


20 


21,140 


21,785 


20,169 


1,793 


1,555 


4,399 


3,766 


3,542 


4.8 


15.3 


24.2 


East North Central 


44 


47 


15 


5,380 


5,547 


4,932 


300 


290 


665 


385 


372 


9.1 


3.4 


78.8 


Pacific 


36 


47 


12 


3,817 


3,622 


3,887 


220 


181 


719 


623 


591 


-1.8 


21.5 


21.7 


Other divisions 


43 


57 


13 


6,209 


6,571 


5,999 


401 


370 


665 


418 


410 


3.5 


8.4 


62.2 


- Decrease 










* Percentages in this column 


repres 


int 1935 sales of establishments included in this survey, divided by tola 


1 1935 sail 


s of each classification. 


* * Pay roll not available for 


fear 19 


36. Pay roll includes compensation of full-time and part-time employee 


, but not 


)f proprietors and firm members of 


unincorporated businesses. 




States Comprising Geographic DIoltlonK 






NEW ENGLAND -Conn., Main 


e, Mou. 


N. H.. R. 1., VI. EAST SOUTI 


i CENTRAL 


■ Ala.. K„ .. MUt., Term. 


MIDDLE ATLANT1C.-N. J.. N 


. y., Pa 


WEST SOUT 


H CENTRAL 


-Ark, La., Okla., Tex. 


EAST NORTH CENTRAL...IIL 


Ind., 1 


rllch., Ohio, WU. MOUNTAIN- 


-Ariz., Colo., 


Idaho, Mont.. Neo., N. Mex.. Utah, Wyo. 


WEST NORTH CENTRAL .10 


wa, Kan 


■., Minn., Mo.. Nebr., N. Dak., S. Dak PACIFIC— Cal 


«., Orel.. W 


ruh. 


SOUTH ATLANTIC-Del, D. 


C. Flo., 


Co., Md . N. C, S. C, Va., W. Va. 







Page 10 




















CENSUS SURVEY OF BUSINESS: 1937-38 






WHOLESALE DISTRIBUTION 




DRY GOODS 












TABLE 3.--SIZE OF SAMPLE 










1937 SURVEY COMPARED WITH 1935 CENSUS 










ESTABLISHMENTS, SALES AND PAY ROLL BY GEOGRAPHIC DIVISIONS 








Number Of 


Net Sales 




Pay Roll* 






Establishments 












KIND OF BUSINESS 




l odd 000 ) 




( 


add 000) 
























Included In 




1935 Sales Of 




1935 Pay Roll Of 


AND 




1937-38 




Those Included 




Those Included 


DIVISION 


1935 


Survey 


1935 


In 1937-38 Survey 


1935 


In 1937-38 Survey 




Census 




% 
Sample 


Census 




% 
Sample 


Census 




% 

Sample 






Number 




Amount 




Amount 


SERVICE AND LIMITED -FUNCTION WHOLESALERS 


UNITED STATES 
Dry goods (full line) 


3,607 


730 


20 


$985 , 400 


$322,906 


33 


$65,428 


$23,072 


35 


306 


89 


29 


265,724 


89,540 


34 


22,030 


8,037 


36 


Dry goods (specialty lines) 




















Notions 


915 


188 


21 


96,778 


38,996 


40 


10,387 


4,515 


43 


Piece goods 


1,873 


397 


21 


593,867 


187,477 


32 


30,393 


9,917 


33 


All other 

Geographic Divisions 


513 


56 


11 


29,031 


6,893 


24 


2,618 


603 


23 




















Dry goods (full line) 




















Middle Atlantic 


64 


15 


23 


39,084 


8,755 


22 


2,967 


706 


24 


East North Central 


27 


7 


26 


70,764 


29,517 


42 


6,319 


2,785 


44 


West North Central 


25 


11 


44 


63,380 


11,683 


18 


4,954 


1,114 


22 


South Atlantic 


69 


21 


30 


31,391 


11,035 


35 


2,686 


1,058 


39 


East South Central 


47 


14 


30 


22,195 


9,705 


44 


1,730 


799 


46 


West South Central 


36 


8 


22 


22,008 


8,992 


41 


1,947 


767 


39 


Other divisions 


38 


13 


34 


16,902 


9,853 


58 


1,427 


808 


57 


Dry goods (specialty lines) 




















Notions 1/ 




















Middle Atlantic 


691 


154 


22 


85,715 


35,585 


42 


9,234 


4,105 


44 


East North Central 


97 


18 


19 


5,375 


1,329 


25 


487 


125 


26 


Other divisions 


113 


16 


14 


5,357 


2,082 


39 


633 


285 


45 


Piece goods 




















New England 


93 


16 


17 


16,392 


2,798 


17 


828 


133 


16 


Middle Atlantic 


1,514 


312 


21 


525,907 


166,220 


32 


26,638 


8,651 


32 


East North Central 


97 


21 


22 


20,343 


7,170 


35 


1,075 


377 


35 


South Atlantic 


31 


4 


13 


4,444 


709 


16 


245 


47 


19 


Pacific 


106 


38 


36 


20,726 


9,113 


44 


1,171 


591 


50 


Other divisions 


32 


6 


19 


6,055 


1,467 


24 


436 


118 


27 


All other 1/ 




















Middle Atlantic 


336 


40 


12 


21,612 


5,444 


25 


1,814 


418 


23 


East North Central 


63 


9 


14 


2,637 


635 


24 


338 


81 


24 


Other divisions 


89 


7 


8 


3,647 


814 


22 


371 


104 


28 


MANUFACTURERS' SALES BRANCHES (with stocks) 


Dry goods (specialty lines) 
Middle Atlantic 


208 


60 


29 


180,322 


34,987 


19 


10,207 


2,396 


23 


111 


20 


18 


151,023 


20,169 


13 


8,663 


1,555 


18 


East North Central 


34 


15 


44 


10.473 


4,932 


47 


559 


290 


52 


Pacific 


33 


12 


36 


8,254 


3,887 


47 


480 


181 


38 


Other divisions 


30 


13 


43 


10,572 


5,999 


57 


505 


370 


73 


* Pay roll includes compensation of full tin 


e and part-time employees, but not of proprietors and fir 


n memb 


srs of unincoi 


porated busin 


esses. 


_1/ 1935 Figures for geographic divisions not 


represented in this survey are omitted. 

States Comprising Geographic Divisions: 










NEW ENGLAND— Conn., Maine, Mass., N. H., 


R. I.. VI. EAST SOUTH CENTRAL-/ 


Llfl., Ky„ 


Miss., Tenn. 






MIDDLE ATLANTIC-N. J., N. V., Pa. 


WEST SOUTH CENTRAL-, 


\rk„ La., 


Okla., Tex. 






EAST NORTH CENTRAL-Ill, lnd., Mich., Oh 


o, Wis. MOUNTAIN— Ariz.. Colo.. Id 


aho. Mont 


. Nev., N. Mex 


, Utah, Wyo. 




WEST NORTH CENTRAL-lowa, Kans., Minn., 


Mo., Nebr., N. Dak., S. Dak. PACIFIC— CalU., Oreg.; Wasl 


i. 








SOUTH ATLANTIC .Del, D. C, Fla., Co., Md 


, N. C, S. C, Va., W. Va. 











' 






UNITED STATES DEPARTMENT OF COMMERCE 

Daniel C. Roper, Secretary 

BUREAU OF THE CENSUS 

William L. Austin. Director 



/y?? 



CENSUS SURVEY OF BUSINESS: 1937-38 



WHOLESALE DISTRIBUTION 



ELECTRICAL GOODS 



BM! ^3- W* 




DECEMBER, 1938 



► 



CENSUS SURVEY OF BUSINESS: 1937-38 
Wholesale Distribution 



ELECTRICAL GOODS 



This is one of a series of final reports presenting the findings of the Census Survey of 
Business for the year 1937 and the first half of 1938. Contained herein are dollar sales of identical 
establishments — service wholesalers and manufacturers' sales branches — selling electrical goods at 
wholesale for the years 1935, 1936, 1937 and the first half of 1938; pay roll for the years 1935 and 
1937; and the value of stocks on hand at the end of 1935, 1936 and 1937. Sales for the year 1937 and 
the first half of 1938 are shown by quarters. As added features, changes in the size of establishment, 
1935 to 1937, are shown; establishments are classified according to their usual terms of sale; and 
sales for the year 1937 are analyzed to show cash and credit business separately. 

This Survey, unlike regular Censuses of Business, is not intended to present a complete pic- 
ture of wholesale trade, but rather to provide a reliable indicator of trend since the last Census. 
It was conducted by mail from lists made up only of establishments included in the 1935 Census, all 
new ones since 1935 being omitted. Those with sales of less than $25,000 for the year 1935 were like- 
wise omitted, as they constitute but a small proportion of total sales. Reporting was purely on a 
voluntary basis with only one reminder follow-up; hence, not all wholesalers who were contacted sub- 
mitted returns. This report, in order to provide reliable trend Information, is further limited to 
those establishments engaged primarily in selling electrical goods at wholesale during the year 1935 
and which still operate in a similar manner. 

Three Regular Censuses 

Three regular Censuses of Business have been taken covering the years 1929, 1933 and 1935, 
respectively. Below is a comparison of the number of service wholesalers engaged primarily in selling 
■electrical goods, together with their sales, pay roll and stocks on hand at the end of the year: 



1929 Census 
1933 Census 
1935 Census 



Establishments 
(Service whole- 
salers) 

2,182 
2,125 
2,438 



Net Sales 



$846,689,000 
$275,839,000 
$576,542,000 



Pay Roll 



$70,682,000 
$30,876,000 
$52,495,000 



Stocks 
(end of year) 

$95,899,000 
$44,266,000 
$75,424,000 



Percent change, all establishments: 

1929 to 1933 - 2.6 - 67.4 

1933 to 1935 +14.7 +109.0 



-56.3 

+70.0 



-53.8 
+70.4 



Identical establishments in this Survey: 



1935 
1936 
1937 



596 
596 
596 



$257,005,000 
$344,364,000 
$427,425,000 



$21,868,000 

not available 

$33,717,000 



$24,346,000 
$32,548,000 
$40,464,000 



Percent change, identical establishments: 
1935 to 1937 



+66.3 



+54.2 



+66.2 



* 



Page 2 



SI Percent Gain for Sales Branches 



I 



In addition to the 596 service wholesalers, 215 sales branches owned by manufacturers of 
electrical goods and operated primarily for the disposal of their products are included in this Survey. 
A comparison of the sales, pay roll and inventories of these identical branches for the years 1935, 
1936 and 1937 is given below: 



1935 
1936 
1937 



Identical 
sales branches 

215 
215 

215 



Percent change, identical branches: 
1935 to 1937 



Net Sales 

#313,815,000 
1447,576,000 
|567,688,000 

+80.9 



Pay Roll 

$14,904,000 

not available 

$18,174,000 



+21.9 



Stocks 
(end of year) 

$16,923,000 
$23,707,000 
$27,986,000 



+65.4 



The 215 sales branches included in this Survey represented 50 percent of the number and ac- 
counted for 90 percent of the sales of all branches in 1935. 

Table 3, attached, measures the size of the sample (service wholesalers and manufacturers' 
sales branches) included in this Survey, in terms of 1935 totals. In this table the number of estab- 
lishments included, together with their 1935 sales and pay roll, is compared by geographic divisions 
with the totals iii the 1935 Census. Service wholesalers are subdivided into those selling a more or 
less full-line of electrical goods (including wiring supplies and construction material establish- 
ments) ; apparatus and equipment houses; and those engaged primarily in selling radios, refrigerators 
and other appliances. For convenience in using the information the percent sample, establishments 
and sales, is reproduced in Tables 1 and 2. 



for the 



Table 2 presents comparable information by geographic divisions as to sales and inventories 
years 1935, 1936 and 1937, and pay roll for the years 1935 and 1937. 



Quarterly Sales, 1937 and First Half of 1938 

A measure of the short term trend in electrical wholesaling is given in Table 1 in terms of 
quarterly sales, service wholesalers and manufacturers' sales branches separately, for 1937 and the 
first half of 1933. Percentage changes (without adjustments for seasonal variation) in quarterly 
sales for the United States as a whole are shown below: 





Service wholesalers 
selling principally — 




Period 


Total 


Elec- 
trical 
Full- 
line 


Apparatus 

and 
Equipment 


Radios , 
Refrigera- 
tors, 
Appliances 


Mfr's. 

Sales 

Branches 


Number of establishments reporting 


596 


405 


23 


168 


215 


Percent increase (+ ) or 

decrease (-) in sales 
1st Cir. to 2nd (Jr. 1937 
2nd Qr. to 3rd (Jr. 1937 
3rd ^r. to 4th Qr. 1937 
4th Qr. 1937 to 1st Qr. 1938 
1st Qr. 1938 to 2nd Qr. 1938 

1st Qr. 1937 to 1st Qr. 1938 
2nd Qr. 1937 to 2nd Qr. 1938 


+ 35.2 
-22.4 
-12.6 
-20.3 
+ 14.7 

-26.8 
-37.9 


+ 29.6 
-13.3 
- 5.0 
-28.9 
+ 14.2 

-24.1 
-33.1 


+ 22.7 
- 2.5 
-22.0 
-15.7 
-11.0 

-21.3 
-42.9 


+ 46.1 
-37.8 
-29.2 
+ 5.6 
+ 17.1 

-32.0 
-45.6 


- 0.3 
-13.9 
-12.3 

- 8.4 
-10.4 

-31.0 
-38.0 



* 



Page 3 

I 

SIZE OF ESTABLISHMENT 
(Service Wholesalers Only) 

The 596 service wholesalers included in the report are classified according to kinds of 
goods handled as follows: 405 full-line houses, 23 apparatus and equipment wholesalers and 168 spe- 
cialize in radios, refrigerators and other appliances. Establishments in each of the three classifi- 
cations are grouped according to 1935 size in Table A, below, where they are compared with all whole- 
sale merchants for that year. For each size group the percent sample, establishments and sales, of 
those included in this Survey is given. 

As might be expected, a greater percentage of the larger establishments than of the smaller 
ones reported for this Survey. The sample for full-line houses is largest in the million-and-over 
bracket, where 38 of 45 (or 84$) of the establishments are included, and decreases with size until in 
the under $100,000 group only 96 of 569 (or 17%) are found. For apparatus and equipment wholesalers 
the sample of establishments decreases from 27 percent in the $200,000 and over group to 9 percent 
for the under $100,000 class and for houses specializing in appliances it drops from 43 percent in 
the million-and-over bracket to 7 percent for those under $ 100, 000. 



TABLE A. 


-ANALYSIS OF SAMPLE BY SIZE OF 


ESTABLISHMENT 


Size of Establishment 


Number of 
establishments 


Net sales-1935 


Percent sample 


(Net sales in 1935) 


1935 
Census 


1937-38 
Survey 


1935 

Census 


1937-38 
Survey 


Estab- | Net 

llshmentsji sales 



ELECTRICAL GOODS (full-line) 



Total 


1,144 

45 


405 
38 


$259,031,000 


$163,910,000 


35 

84 


63 


$1,000,000 and over 


62,336,000 


(x) 


$500,000 - $999,999 


79 


58 


(x) 


40,888,000 


73 


(x) 


$300,000 - $399,999 


128 


75 


48,824,000 


28,370,000 


59 


58 


$200,000 - $299,999 


111 


54 


27,272,000 


13,709,000 


49 


50 


$100,000 - $199,999 


212 


84 


30,758,000 


12,525,000 


40 


41 


Under $100,000 


569 


96 


15,478,000 


6,082,000 


17 


39 



APPARATUS AND EQUIPMENT 



Total 


195 


23 


15,155,000 


4,300,000 


12 


28 


$200,000 and over 


15 


4 


(x) 


2,718,000 


27 


(x) 


$100,000 - $199,999 


24 


5 


3,305,000 


673,000 


21 


20 


Under $100,000 


156 


14 


(x) 


909,000 


9 


(x) 



RADIOS, REFRIGERATORS AND OTHER APPLIANCES 



Total 


1,058 


168 


284,328,000 


88,795,000 


16 


31 


$1,000,000 and over 


51 


22 


138,632,000 


48,682,000 


43 


35 


$500,000 - $999,999 


78 


23 


55,255,000 


17,003,000 


29 


31 


$300,000 - $499,999 


83 


28 


32,382,000 


11,151,000 


34 


34 


$200,000 - $299,999 


77 


23 


18,682,000 


5,681,000 


30 


30 


$100,000 - $199,999 


138 


26 


19,903,000 


3,752,000 


19 


19 


Under $100,000 


631 


46 


19,474,000 


2,526,000 


7 


13 



(x) Withheld to avoid disclosure. 
Increases by Size, 1937 over 1935 

Percentage increases between 1935 and 1937 in sales, pay roll and stocks are shown in Table 
B, Page 4, by size of establishment. It is interesting to note that gains are fairly uniform for all 
size brackets. In general the smaller houses show slightly larger than average increases in sales 
from 1935 to 1937. This trend, however, may be due in part to the method of sampling, as only those 
establishments operating continuously as electrical wholesalers in the same general location since 
^January 1, 1935, are included. 



Page 4 



TABLE B. -INCREASES IN SALES, PAY ROLL AND STOCKS, 1937 OVER 1935, 
BY SIZE OF ESTABLISHMENT 



Size of establishment 
(Net sales in 1935) 



Number of 
establishments 



Percent increase, 1937 over 1935 



Sales 



Pay roll 



Stocks 





ELECTRICAL GOODS 


(full-line) 






Total 


405 


72.3 


64.7 


60.5 


$1,000,000 and over 


38 


62.5 


64.6 


56.6 


$500,000 - $999,999 


58 


77.9 


65.1 


70.0 


$300,000 - $499,999 


75 


67.6 


57.1 


57.9 


$200,000 - $299,999 


54 


76.5 


61.1 


54.2 


$100,000 - $199,999 


84 


104.1 


89.4 


73.5 


Under $100,000 


96 


82.4 


56.3 


40.0 



APPARATUS AND EQUIPMENT 






Total 


23 


69.0 


53.7 


40.4 


$200,000 and over 


4 


73.6 


48.6 


21.5 


$100,000 - $199,999 


5 


40.4 


80.6 


89.5 


Under $100,000 


14 


76.3 


44.1 


25.2 



RADIOS, 


REFRIGERATORS AND OTHER APPLIANCES 




Total 




168 


55.1 


38.2 


83.0 


$1,000,000 and over 




22 


62.0 


36.7 


109.0 


$500,000 - $999,999 




23 


47.3 


41.2 


83.5 


$300,000 - $499,999 




28 


45.0 


35.5 


78.7 


$200,000 - $299,999 




23 


32.2 


35.5 


33.5 


$100,000 - $199,999 




26 


53.5 


40.3 


39.2 


Under $100,000 




46 


71.9 52.8 


73.6 



Changes from one size bracket to another, 1935 to 1937, are shown in Table C for full-line 
wholesalers and for houses specializing in appliances. In keeping with the general increase in busi- 
ness, the trend was from the lower to the upper brackets. For example, in the full-line trade 85 of 
the 405 houses studied were in the million-and-over bracket in 1937 as compared with only 38 in 1935. 
Of the 168 appliance wholesalers 35 reported sales of over $1,000,000 in 1937 while only 22 were in 
this class in 1935. More than one half (259 of 405) of the full-line houses moved up at least one 
size bracket. 



TABLE C.--NUMBER OF SERVICE WHOLESALERS BY SIZE CLASSIFICATION; 1935 AND 1937 



Size of establishment 
(based on net sales) 



Total 

establishments 

1935 



(1) 



(2) 



(3) 



(4) 



(5) 



(6) 



ELECTRICAL GOODS 


( full-line ) 










Total establishments, 1937 


405 


85 


85 


81 


41 


70 


43 


$1,000,000 and over in 1935 


38 


38 












$500,000 - $999,999 in 1935 


58 


43 


14 


1 








$300,000 - $499,999 in 1935 


75 


4 


49 


21 


1 






$200,000 - $299,999 in 1935 


54 




14 


35 


5 






$100,000 - $199,999 in 1935 


84 




8 


23 


29 


23 


1 


Under $100,000 in 1935 


96 






1 


6 


47 


42 



RADIOS, REFRIGERATORS AND OTHER APPLIANCES 



Total establishments, 1937 


168 


35 


27 


28 


16 


35 


27 


$1,000,000 and over in 1935 


22 


21 


1 










$500,000 - $999,999 in 1935 


23 


11 


12 










$300,000 - $499,999 in 1935 


28 


3 


11 


13 


1 






$200,000 - $299,999 in 1935 


23 




2 


12 


5 


3 


1 


$100,000 - $199,999 in 1935 


26 




1 


3 


9 


13 




Under $100,000 in 1935 


46 








1 


19 


26 



(1) $1,000,000 and over in 1937 

(2) $500,000 - $999,999 in 1937 

(3) $300,000 - $499,999 in 1937 



(4) $200,000 - $299,999 in 1937 

(5) $100,000 - $199,999 in 1937 

(6) Under $100,000 in 1937 



» 



P*8e 5 



TERMS OF SALE 



(Service Wholesalers and Manufacturers' Sales Branches) 

The Bureau of the Census collected Information in this Survey for the first time on the 
usual terms of sale. Each cooperating establishment was asked to report its usual credit period and 
its customary cash discount rate, if any. In addition, sales for the year 1937 were to be analyzed 
to show "spot-cash" business; credit sales for 10 days or less and credit of more than ten days. 
Houses granting discounts for early payment of time sales were asked to report the percentage of 
their credit sales discounted in 1937. Of the total 567 service wholesalers and 172 manufacturers' 
sales branches supplied this information. 

Credit Period and Ra te of Discount 

Table D classifies 396 full-line houses, 22 apparatus and equipment wholesalers, 149 appli- 
ance establishments, and 172 manufacturers' sales branches according to their usual credit periods 
and cash discount rates. It should be noted that these are the usual terms for the establishments, 
and that either or both the credit period and the rate of discount may vary with the commodity sold 
or with the customer. Also the classification as given here represents the policy of the house from 
which practice may vary. Thirty days is the usual credit period in the electrical trade although 60 
days was reported by 31 full-line houses and by 5 appliance establishments. A number of establish- 
ments stated that they extended credit but failed to report the period. 

A cash discount of 2 percent is customarily granted for prompt payment of bills, however, 
some houses bill net or grant only 1 percent. A number of service wholesalers vary their rates ac- 
cording to customers or lines of merchandise. The most common method of billing is 2/10, net 30 or 
net 10th proximo. 



TABLE D. --ESTABLISHMENTS CLASSIFIED ACCORDING TO USUAL TERMS OF SALE 



Usual Credit Period 



Total 
number of 

estab- 
lishments 



Usual discount rate 



Net' 



1* 



2fo 



Other 
rates 



Combina- 
tion of 
rate3** 



Discount 

granted , 

rate not 

stated 





ELECTRICAL 


GOODS (full-line) 








Total establishments 


396 


4 


__ 


A/306 


__ 


51 


35 


30 days 


254 


3 


— 


197 


— 


33 


21 


60 days 


31 


— 


— 


26 


— 


5 


— 


Other periods 


9 


— 


— 


1 


— 


4 


4 


Periods not stated 


102 


1 


-- 


82 


— 


9 


10 



APPARATUS AND EQUIPMENT 



Total establishments 
30 days 



22 
22 



|/9 
9 



RADIOS, REFRIGERATORS AND OTHER APPLIANCES 



Total establishments 
Cash 
30 days 
60 days 

Combination of periods*** 
Periods not stated 



149 

6 

56 

5 

6 

76 



40 

6 

11 

1 
22 



3/6 



39 



14 

3 

2 
9 



MANUFACTURERS' SALES BRANCHES 



Total 
30 days 
Periods not stated 


172 
96 
76 


54 
36 
18 


5/ll 
11 


V75 
49 
26 


— 


— 


32 
32 



Page 6 



* 
** 



Cash discount not usually granted. 

Rate differs with commodity and customer; no single rate predominating. 
*** Period varies with commodity and customer. 

1/ 219 establishments reported their discount period as 10 days; 85 as 10th proximo; 2 as 30 days. 
2/ All establishments reported their discount period as 10 days. 
3/ All establishments reported their discount period as 10 days. 

4/ 39 establishments reported their discount period as 10 days; 42 as 10th proximo. 
5/ 7 establishments reported their discount period as 10 days; 4 as 10th proximo. 
6/ 47 establishments reported their discount period as 10 days; 14 as 10th proximo; 14 as 45 days. 

Cash vs. Credit Sales 

The cash-credit division of 1937 sales is given in Table E. Selling on credit for a period 
of more than 10 days is the predominate practice in the electrical trade. Eighty percent of the busi- 
ness of full-line houses is on this basis; 94.6 percent for apparatus and equipment distributors; 54.2 
percent for appliance wholesalers and 96.5 percent of the sales of manufacturers' sales branches. 
"Spot cash" sales are important only in the appliance business where they account for 30.1 percent of 
the total. Full-line houses show the largest percentage of credit for 10 days or less, 16.7, followed 
by appliance wholesalers with 15.7. Only a negligible portion of the business of apparatus and equip- 
ment distributors and manufacturers' sales branches are on this basis. 



TABLE E. -CASH-CREDIT ANALYSIS OF SALES 
{Sales expressed in thousands of dollars) 



Usual Credit Period 



Total 



Usual rate of discount 



Net 



1* 



2$ 



Other 


Combina- 


Discount 


rates 


tion of 


granted , 


(3-5 


rates 


rate not 


etc. ) 




stated 



ELECTRICAL GOODS (full-line) 



Number of establishments 


396 


4 


— 


306 


— 


51 


35 


Net sales, 1937 (add 000) 


$277,436 


$499 


__ 


$196,998 


__ 


$55,826 


$24,113 


Spot cash 


9,059 


69 


— 


7,577 


— 


43 


1,370 


Credit 10 days or less 


46,387 


1 


— 


36,586 


— 


3,164 


6,636 


Credit more than 10 days 


221,990 


429 


— 


152,835 


— 


52,619 


16,107 


Percent of net sales 
















Spot cash 


3.3 


13.8 


— 


3.8 


— 


0.0 


5.7 


Credit 10 days or less 


16.7 


0.2 


— 


18.6 


— 


5.7 


27.5 


Credit more than 10 days 


80.0 


86.0 


— 


77.6 


— 


94.3 


66.8 






Percent of credit . 


sales di 


scounted 




Percent of all credit sales 














discounted (weighted average) 






— J 53.8 


~ 


65.6 


46.8 





APPARATUS 


AND 


EQUIPMENT 








Number of establishments 


22 


7 


— 


9 


3 


— 


3 


Net sales, 1937 (add 000) 


$6,668 
199 


$867 


— 


$1,057 
119 


$932 
2 


— 


$3,812 


Spot cash 


14 


64 


Credit 10 days or less 


160 


— 


— 


155 


— 


— 


5 


Credit more than 10 days 


6,309 


853 


— 


783 


930 


— 


3,743 


Percent of net sales 
















Spot cash 


3.0 


1.6 


— 


11.2 


0.2 


— 


1.7 


Credit 10 days or less 


2.4 


— 


— 


14.7 


— 


— 


0.1 


Credit more than 10 days 


94.6 


98.4 


— 


74.1 


99.8 


— 


98.2 




Percent of 


credit : 


sales di 


scounted 




Percent of all credit sales 
















discounted (weighted average) 






~ 


30.0 


99.8 


~ 


5.7 



Page 7 



TABLE E.--CASH-CREDIT ANALYSIS OF SALES (Continued) 
( Sales expressed in thousands of dollars ) 



Usual Credit Period 



Total 



Usual rate of discount 



Net 



155 



2< 



Other 
rates 
(3-5 
etc. ) 



Combina- 
tion of 
rates 



Discount 

granted , 

rate not 

stated 



MANUFACTURERS' SALES BRANCHES 



RADIOS, 


REFRIGER. 


VTORS AND OTHER 


APPLIANCES 






Number of establishments 


149 


40 


6 


81 


~ 


8 


14 


Net Sales, 1937 (add 000) 


$125,021 


#82,333 


$6,109 


$24,321 


__ 


$3,343 


$8,915 


Spot cash 


37,687 


33,246 


297 


3,160 


— 


99 


885 


Credit 10 days or less 


19,613 


12,524 


812 


5,718 


— 


44 


515 


Credit more than 10 days 


67,721 


36,563 


5,000 


15,443 


— 


3,200 


7,515 


Percent of net sales 
















Spot cash 


30.1 


40.4 


4.9 


13.0 


— 


3.0 


9.9 


Credit 10 days or less 


15.7 


15.2 


13.3 


23.5 


— 


1.3 


5.8 


Credit more than 10 days 


54.2 


44.4 


81.8 


63.5 


~ 


95.7 


84.3 






Percent of credit sales 


discounted 




Percent of all credit sales 
















discounted (weighted average) 






16.0 


47.0 


— 


79.3 


31.5 



Number of establishments 


172 


54 


11 


75 


— 


— 


32 


Net sales, 1937 (add 000) 


$406,303 


$159,851 


$1,740 


$75,939 


__ 


__ 


$168,773 


Spot cash 


2,281 


1,690 


— 


196 


— 


— 


395 


Credit 10 days or less 


11,785 


1,603 


— 


10,172 


— 


— 


10 


Credit more than 10 days 


392,237 


156,558 


1,740 


65,571 


— 


— 


168,368 


Percent of net sales 
















Spot cash 


0.6 


1.1 


— 


0.3 


— 


— 


0.2 


Credit 10 days or less 


2.9 


1.0 


— 


13.4 


— 


— 


— 


Credit more than 10 days 


96.5 


97.9 


100.0 


86.3 


— 


— 


99.8 






Percen 


t of crec 


lit sales 


discounted 




Percent of all credit sales 
















discounted (weighted average) 






61.6 


26.9 


-- 


— 


1.2 



Credit Sales Discounted 

The extent to which customers take advantage of cash discounts when allowed is also shown in 
Table E. Full-line houses allowing 2 percent for early payment of time sales discounted 53.8 percent 
of their 1937 credit sales. Similarly, apparatus and equipment distributors granting 2 percent dis- 
counted 30.0 percent of their sales; appliance wholesalers 47.0 percent of their business; and manufac- 
turers* sales branches granting 2 percent discounted 26.9 percent of their sales. 

- - 



The current Census Survey of Business includes retail as well as wholesale trade and is na- 
tion-wide in scope. It is being conducted by the Bureau of the Census with funds provided by the Works 
Progress Administration. The project is under the direction of Fred A. Gosnell, Chief Statistician, 
who was also in charge of previous Business Censuses. Wholesale trade reports are prepared under the 
immediate supervision of John Albright, assisted by James D. Lenig. 



Page 8 



CENSUS SURVEY OF BUSINESS: 1937-38 
















WHOLESALE DISTRIBUTION 








ELECTRICAL GOODS 














TABLE 1.--NET SALES BY QUARTERS: 1937 AND FIRST HALF OF 1938 










FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 










KIND OF BUSINESS 

And 

DIVISION 


Sample 

Based on 

1935 

Census 


No. OF 
Estab. 

LiSH- 
MENTS 


Net 

Sales 
Year 
1937 

(«dd 000 ) 




Net Sales By Quarters 

(add OOO) 




Percent 
Chance 


1937 


1938 


1st Qr. 


2ndQr 


Estab- 

USH- 

MENTS 

% 


Net 

Sales 
% 


Report 

ING 
1937-38 
Survey 


1ST Qr 
Jan. 1 
Mar. 31 


2nd Qr. 
April 1 
June 30 


3rd Qr. 
July 1 
Sept. 30 


4th Qr. 
Oct. l 
Dec. 31 


1st Qr. 
Jan. 1 
Mar. 31 


2nd Qr. 
April 1 
June 30 


1937 

To 

1st Qr 

1938 


1937 

To 

2ndQr 

1938 


SERVICE WHOLESALERS 


UNITED STATES 
Electrical goods (full line) 1/ 


25 


45 


596 


#427,425 


$98,933 


$133,798 


$103,891 


$90,803 


$72,405 


$83,023 


-26.8 


-37.9 


35 


63 


405 


282,464 


62,957 


81 , 612 


70,724 


67,171 


47,778 


54,560 


-24.1 


-33.1 


Apparatus and equipment 


13 


22 


23 


7,266 


1,668 


2,046 


1,995 


1,557 


1,313 


1,169 


-21.3 


-42.9 


Radios, refrigerators and appliances 
Electrical goods (full line) 1/ 


15 


30 


168 


137,695 


34,308 


50,140 


31,172 


22,075 


23,314 


27,294 


-32.0 


-45.6 


























New England 


33 


68 


39 


21,123 


4,793 


5,883 


5,203 


5,244 


3,255 


4,122 


-32.1 


-29.9 


Middle Atlantic 


27 


53 


103 


61,882 


13,659 


17,207 


15,446 


15,570 


10,236 


11,316 


-25.1 


-34.2 


East North Central 


34 


62 


75 


70,841 


15,546 


20,155 


17,870 


16,670 


11,490 


12,158 


-26.1 


-39.7 


West North Central 


51 


72 


42 


29,673 


6,136 


8,509 


7,939 


7,089 


5,463 


7,176 


-11.0 


-15.7 


South Atlantic 


46 


61 


50 


28,334 


6,635 


8,547 


6,972 


6,180 


4,532 


5,498 


-31.7 


-35.7 


East South Central 


47 


55 


14 


8,545 


1,945 


2,509 


2,212 


1,879 


1,518 


1,633 


-22.0 


-34.9 


West South Central 


43 


62 


23 


16,484 


3,621 


5,249 


4,062 


3,552 


3,160 


3,672 


-12.7 


-30.0 


Mountain 


40 


85 


12 


8,743 


2,068 


2,640 


2,054 


1,981 


1,544 


1,813 


-25.3 


-31.3 


Pacific 


36 


71 


47 


37,439 


8,554 


10,913 


8,966 


9,006 


6,580 


7,172 


-23.1 


-34.3 


Apparatus and equipment 


























Middle Atlantic 


12 


23 


8 


4,359 


964 


1,272 


1,271 


852 


733 


739 


-24.0 


-41.9 


East North Central 


11 


21 


6 


1,752 


449 


469 


419 


415 


343 


213 


-23.6 


-54.6 


Pacific 


17 


21 


4 


522 


109 


144 


141 


128 


100 


83 


- 8.3 


-42.4 


Other divisions 


16 


18 


5 


633 


146 


161 


164 


162 


137 


134 


- 6.2 


-16.8 


Radios, refrigerators and appliances 


























New England 


14 


48 


10 


9,325 


2,549 


3,278 


2,109 


1,389 


1,299 


1,929 


-49.0 


-41.2 


Middle Atlantic 


13 


13 


36 


21,675 


4,635 


7,495 


5,551 


3,994 


3,335 


4,402 


-28.0 


-41.3 


East North Central 


17 


50 


46 


59,463 


15,785 


23,034 


12,124 


8,520 


9,909 


10,598 


-37.2 


-54.0 


West North Central 


8 


28 


9 


9,885 


2,746 


3,578 


2,123 


1,438 


1,837 


2,190 


-33.1 


-38.8 


South Atlantic 


14 


37 


15 


11,043 


2,642 


3,959 


2,601 


1,841 


1,978 


2,204 


-25.1 


-44.3 


East South Central 


19 


26 


6 


3,923 


887 


1,506 


917 


613 


821 


872 


- 7.4 


-42.1 


West South Central 


25 


35 


14 


8,618 


1,977 


3,216 


2,142 


1,283 


1,715 


2,066 


-13.3 


-35.8 


Mountain 


11 


24 


3 


1,726 


434 


598 


441 


253 


302 


414 


-30.4 


-30.8 


Pacific 


19 


35 


29 


12,037 


2,653 


3,476 


3,164 


2,744 


2,118 


2,619 


-20.2 


-24.7 






1 


MANUFACTURERS' 


SALES BI 


RANCHES 














UNITED STATES 
Electrical goods 


50 


90 


215 


567,688 


157,337 


156,874 


135,026 


118,451 


108,486 


97,235 


-31.0 


-38.0 


























New England 


50 


95 


14 


40,795 


11,008 


11,044 


9,769 


8,974 


8,034 


6,392 


-27.0 


-42.1 


Middle Atlantic 


53 


92 


47 


164,055 


45,906 


47,195 


38,128 


32,826 


32 , 602 


29,316 


-29.0 


-37.9 


East North Central 


50 


83 


55 


159,665 


46,735 


44,260 


36,460 


32,210 


25,868 


23,494 


-44.7 


-46.9 


West North Central 


60 


95 


26 


50,970 


13,039 


14,177 


13,046 


10,708 


10,526 


9,679 


-19.3 


-31.7 


South Atlantic 


45 


98 


20 


49 , 309 


13,477 


12,138 


10,966 


12,728 


7,825 


9,475 


-41.9 


-21.9 


West South Central 


45 


81 


13 


24,169 


6,936 


6,111 


5,868 


5,254 


4,524 


4,825 


-34.8 


-21.0 


Pacific 


48 


89 


30 


58,271 


15,302 


16,880 


13,851 


12,238 


14,916 


10,919 


- 2.5 


-35.3 


Other divisions 


43 


96 


10 


20,454 


4,934 


5,069 


6,938 


3,513 


4,191 


3,135 


-15.1 


-38.2 


- Decrease 
























* Percentages in this column represent 


935 sa 


les of e 


stablishments include 


d in this s 


urvey, divic 


ed by tota 


1935 sale 


s of each 


:lassificatior 


. 




1/ Includes houses formerly classified as 


"Wiring 


supplie 


s and construction 
States Comprising G 


naterials". 
eographie Div 


dlons: 














NEW ENGLAND-Conn., Main,, Mass., N. 


H., R. /. 


VI 






EAST SO 


JTH CENTR 


AL-Alo., K s 


., Miss., Ter 


n. 






MIDDLE ATLANTIC-N. J., N. Y., Pa. 










WEST SO 


UTH CENTl 


<AL-Ark, L 


■., Okla., Te. 


K. 






EAST NORTH CENTRAL-IIL, Ind., Mtch., 


Ohio, V 


Vis. 






MOUNTAl 


N— Ariz.. Co 


o., Idaho, \ 


ont., Nev., fi 


1. M.... Ular 


, Wyo. 




WEST NORTH CENTRAL -Iowa, Kant., M 


inn.. Mo 


, fVeir., 


N. Dak., S. Dak. 




PACIFIC— 


Calil., Omg.. 


Wash. 










SOUTH ATLANTIC-Del, D. C, Fla., Go., 


Md„ N 


C, S. c 


., Va., W. Va. 



















Page 9 



> 



CENSUS SURVEY OF BUSINESS: 


937-38 










WHOLESALE DISTRIBUTION 








ELECTRICAL GOODS 








TABLE 2. 


SALES, PAY ROLL AND STOCKS: 1937, 1936 AND 1935 






FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 








Sample 

Based on 

1935 

Census 


No of 
Estab 


Net Sales 




Pay Roll" 


Stocks On Hand 
End Of Year 


Percent Increase 
1935 to 1937 


KIND OF BUSINESS 

And 

DIVISION 


lish 
ments 
Report 


(add 0001 




( add 000) 




add 000 1 






Estab 


. 


























ush- 

MENTS 


Net 

Sales 


INC 

1937-38 


1937 


1936 


1935 


1937 


1935 


1937 


1936 


1935 


Net 
Sales 


Pay 

Roll 


Stocks 




% 


% 


Survey 


























SERVICE WHOLESALERS 


UNITED STATES 
Electrical goods (full lino) 1/ 


25 


45 


596 


$427,425 


$344,364 


$257 , 005 


$33,717 


$21,868 


$40,464 


{32,548 


$24,346 


66.3 


54.2 


66.2 


35 


63 


405 


282 , 464 


221,165 


163,910 


21,083 


12,798 


27,697 


23,660 


17,255 


72.3 


64.7 


60.5 


Apparatus and equipment 


13 


22 


23 


7,266 


5.791 


4,300 


1,007 


655 


688 


604 


490 


69.0 


53.7 


40.4 


Radios, refrigerators and 






























appliances 
Electrical goods (full line) A/ 


15 


30 


168 


137 , 695 


117,408 


88,795 


11 , 627 


8,415 


12,079 


8,284 


6,601 


55.1 


38.2 


83.0 






























New England 


33 


68 


39 


21,183 


17,553 


14,053 


1,574 


1,099 


2,155 


1,918 


1,721 


50.3 


43.2 


25.2 


Middle Atlantic 


27 


53 


103 


61,882 


49 , 911 


37,054 


5,002 


3,210 


5,511 


5,058 


3,723 


67.0 


55.8 


48.0 


East North Central 


34 


62 


75 


70,241 


52,301 


36,789 


5,116 


2,801 


6,255 


4,985 


3,502 


90.9 


82.6 


78.6 


West North Central 


51 


72 


42 


29,673 


22 , 850 


18,058 


2,202 


1,504 


2,910 


2,660 


1,842 


64.3 


46.4 


58.0 


South Atlantic 


46 


61 


50 


28,334 


22,314 


16,908 


2,128 


1,220 


3,013 


2,473 


1,787 


67.6 


74.4 


68.6 


East South Central 


47 


55 


14 


8,545 


5,684 


3,407 


465 


165 


831 


693 


421 


150.8 


181.8 


97.4 


West South Central 


43 


62 


23 


16,484 


11,917 


7,524 


1,033 


544 


1,673 


1,267 


911 


L19.1 


89.9 


33.6 


Mountain 


40 


85 


12 


8,743 


6,953 


5,531 


575 


389 


805 


735 


559 


58.1 


47.8 


44.0 


Pacific 


36 


71 


47 


37,439 


31,677 


24,586 


2,988 


1,866 


4,544 


3,871 


2,739 


52.3 


60.1 


62.9 


Apparatus and equipment 






























Middle Atlantic 


12 


23 


8 


4,359 


3,456 


2,630 


374 


298 


314 


296 


255 


65.7 


25.5 


23.1 


East North Central 


11 


21 


6 


1,752 


1,406 


1,059 


444 


230 


204 


162 


100 


65.4 


93.0 


104.0 


Pacific 


17 


21 


4 


522 


452 


286 


94 


67 


102 


93 


82 


82.5 


40.3 


24.4 


Other divisions 


16 


18 


5 


633 


477 


325 


95 


60 


68 


53 


53 


94.8 


58.3 


28.3 


Radios, refrigerators and 






























appliances 






























New England 


14 


48 


10 


9,325 


8,211 


6,184 


773 


594 


754 


418 


453 


50.8 


30.1 


66.4 


Middle Atlantic 


13 


13 


36 


21,675 


13,453 


14,665 


2,593 


1,793 


2,293 


1,798 


1,397 


47.3 


44.6 


64.1 


East North Central 


17 


50 


46 


59,463 


45 , 782 


32,999 


4,117 


2,856 


2,565 


1,505 


1,378 


80.2 


44.2 


86.1 


West North Central 


8 


28 


9 


9,885 


9,581 


6,896 


926 


743 


1,366 


1,013 


724 


43.3 


24.6 


88.7 


South Atlantic 


14 


37 


15 


11,043 


10,233 


8,886 


881 


822 


1,293 


914 


785 


24.3 


7.2 


64.7 


East South Central 


19 


26 


6 


3,923 


3,158 


1,628 


288 


136 


362 


223 


173 


141.0 


111.8 


109.2 


West South Central 


25 


35 


14 


8,618 


7,710 


5,598 


703 


472 


1,157 


837 


622 


53.9 


48.9 


86.0 


Mountain 


11 


24 


3 


1,726 


1,521 


1,252 


181 


130 


258 


167 


187 


37.9 


39.2 


38.0 


Pacific 


19 


35 


29 


12,037 


12,759 


10,687 


1,165 


869 


2,031 


1,409 


882 


12.6 


34.1 


130.3 








MANUFACTURERS' i 


SALES BRANCHES 






UNITED STATES 


50 


90 


215 


$567,688 


$447,576 


$313,815 


$18,174 


$14,904 


$27,986 


$23,707 


$16,923 


80.9 


21.9 


65.4 


Electrical goods 






























New England 


50 


95 


14 


40,795 


32,294 


24,437 


1,274 


1,040 


1,533 


1,298 


933 


66.9 


22.5 


75.0 


Middle Atlantic 


53 


92 


47 


164,055 


126,906 


102,003 


5,575 


4,629 


6,929 


5,850 


4,222 


60.3 


20.4 


64.1 


East North Central 


50 


83 


55 


159,665 


120,279 


83,269 


5,407 


4,635 


6,882 


6,107 


3,996 


91.7 


16.7 


72.2 


West North Central 


60 


95 


26 


50,970 


46,964 


28,547 


1,519 


1,213 


2,547 


2,172 


1,603 


78.5 


25.2 


58.9 


South Atlantic 


45 


98 


20 


49,309 


41,779 


23,838 


1,186 


917 


2,881 


2,092 


1,588 


106.9 


29.3 


81.4 


West South Central 


45 


81 


13 


24,169 


16,069 


9,699 


662 


415 


1,345 


1,172 


1,081 


149.2 


59.5 


24.4 


Pacific 


48 


89 


30 


58,271 


48,567 


30,827 


2,085 


1,735 


4,701 


4,022 


2,820 


89.0 


20.2 


66.7 


Other divisions. 


43 


96 


10 


20,454 


14,718 


11,195 


466 


320 


1,068 


994 


680 


82.7 


45.6 


57.1 


* Percentages in this column r 


epresen 


1935 


sales of establishments included 


in this survey, divided by total 1935 


sales of c 


ach classification. 


* * Pay roll not available for ye 


ar 193C 


. Pay 


roll includes compensation of 1 


>oth full-time and part-time employees, 


but not o 


f proprietors and firm members 


of unincorporated businesses. 














1/ Includes houses formerly das 


■sified a 


s "Wiri 


ig supplies and construction m 

Stales Comprising Ge 


aterials". 

ographic Divisions: 






NEW ENGLAND-Conn., Maine, 


Man., i 


H„ R. 


/., VI. 


EAST SOUTH CENTRAL-A 


la.. Ky„ M 


iu., T.nn. 


MIDDLE ATLANT1C-N. )., N. V 


., Pa. 






WEST SOUTH CENTRAL-A 


rk, La.. 


Ha., Tex. 


EAST NORTH CENTRAL-IIL, 1 


nd., Mb 


i.. Ohio, 


Wit. 


MOUNTAIN— Ariz.. Colo.. Id 


iho. Monl . 


Nev„ N. Mez„ Utah, W V o. 


WEST NORTH CENTRAL -Iowa, 


Kan,.. 


Minn,, fl 


fo.. Net/., N. Dak., S, Dak. 


PACIFIC— Call/., Oreg., Wash 






SOUTH ATLANTIC-Dei, D. C, 


Fla„ C 


"., Md.. 


N. C, S. C, Va., W. Va. 









Page 10 



CENSUS SURVEY OF BUSINESS: 1937-38 






WHOLESALE DISTRIBUTION 




ELECTRICAL GOODS 












TABLE 3.-SIZE OF SAMPLE 










1937 SURVEY COMPARED WITH 1935 CENSUS 










ESTABLISHMENTS, SALES AND PAY ROLL BY GEOGRAPHIC DIVISIONS 








Number Of 


Net Sales 




Pay Roll* 






Establishments 












KIND OF BUSINESS 




(«dd 000 ) 




( 


add 000) 






Included in 




1935 Sales Of 




1935 Pay Roll Of 


And 




1937-38 




Those Included 




Those Included 


DIVISION 


1935 


Survey 


1935 


In 1937-38 Survey 


1935 


In 1937-38 Survey 




Census 




% 
Sample 


Census 




% 
Sample 


Census 




% 

Sample 






Number 




Amount 




Amount 


SERVICE WHOLESALERS 


UNITED STATES 1/ 
Electrical goods (full line) 2/ 


2,417 


596 


25 


$575,256 


$257,005 


45 


$52,259 


$21,868 


42 


1,153 


405 


35 


261,092 


163,910 


63 


23,139 


12,798 


55 


Apparatus and equipment 1/ 


178 


23 


13 


19,645 


4,300 


22 


2,407 


655 


27 


Radios, refrigerators and appliances 
Electrical goods (full line) 2/ 


1,086 


168 


15 


294,519 


88,795 


30 


26,713 


8,415 


32 




















New England 


117 


39 


33 


20,679 


14,053 


68 


1,820 


1,099 


60 


Middle Atlantic 


383 


103 


27 


69,501 


37 , 054 


53 


6,594 


3,210 


49 


East North Central 


219 


75 


34 


59,055 


36,789 


62 


5,270 


2,801 


53 


West North Central 


83 


42 


51 


24,919 


18,058 


72 


2,181 


1,504 


69 


South Atlantic 


108 


50 


46 


27,512 


16,908 


61 


2,287 


1,220 


53 


East South Central 


30 


14 


47 


6,216 


3,407 


55 


397 


165 


42 


West South Central 


54 


23 


43 


12,214 


7,524 


62 


1,094 


544 


50 


Mountain 


30 


12 


40 


6,480 


5,531 


85 


509 


389 


76 


Pacific 


129 


47 


36 


34,516 


24,586 


71 


2,987 


1,866 


62 


Apparatus and equipment 




















Middle Atlantic 


69 


8 


12 


11,471 


2,630 


23 


1,003 


298 


30 


East North Central 


53 


6 


11 


5,000 


1,059 


21 


862 


230 


27 


Pacific 


24 


4 


17 


1,335 


286 


21 


211 


67 


32 


Other divisions 


32 


5 


16 


1,839 


325 


18 


331 


60 


18 


Radios, refrigerators and appliances 




















New England 


69 


10 


14 


12,784 


6,184 


48 


1,293 


594 


46 


Middle Atlantic 


277 


36 


13 


110,323 


14,665 


13 


9,637 


1,793 


19 


East North Central 


263 


46 


17 


65,345 


32,999 


50 


6,026 


2,856 


47 


West North Central 


106 


9 


8 


24,485 


6,e96 


28 


2,408 


743 


31 


South Atlantic 


106 


15 


14 


23,950 


8,886 


37 


2,341 


822 


35 


East South Central 


31 


6 


19 


6,340 


1,628 


26 


628 


136 


22 


West South Central 


57 


14 


25 


15,942 


5,598 


35 


1,375 


472 


34 


Mountain 


27 


3 


11 


5,182 


1,252 


24 


494 


130 


26 


Pacific 


150 


29 


19 


30,168 


10,687 


35 


2,511 


869 


35 




MANUFACTURERS' SALES BRANCHES 










UNITED STATES 
Electrical goods 


428 


215 


50 


349, 819 


313,815 


90 


17,676 


14,904 


84 




















New England 


28 


14 


50 


25,636 


24,437 


95 


1,252 


1,040 


83 


Middle Atlantic 


88 


47 


53 


110,516 


102,003 


92 


5,653 


4,629 


82 


East North Central 


111 


55 


50 


100,929 


83,269 


83 


5,504 


4,635 


84 


West North Central 


43 


26 


60 


30,194 


28,547 


95 


1,324 


1,213 


92 


South Atlantic 


44 


20 


45 


24,227 


23,838 


98 


1,013 


917 


91 


West South Central 


29 


13 


45 


12,010 


9,699 


81 


584 


415 


71 


Pacific 


62 


30 


48 


34,651 


30,827 


89 


1,966 


1,735 


88 


Other divisions 


23 


10 


43 


11,656 


11,195 


96 


380 


320 


84 


* Pay roll includes compensation of full-time' 


and part-time employees, but not of proprietors and firm 


member 


s of unincorp 


crated busines 


ses. 


\J 1935 Figures for 21 apparatus and equipi 


nent wholesalers in two geographic divisions not represen 


ted in th 


is survey are 


omitted. 




2/ Includes houses formerly classified as "Wi 


ring supplies and construction materials". 
States Comprising Geographic Divisions: 










NEW ENCLAND-Conn., Maine, Man., N. H., 1 


?. /., VI. EAST SOUTH CENTRAL- 


Ma., Ky., 


Miss., Tenn. 






MIDDLE ATLANT1C-N. J., N. Y., Pa. 


WEST SOUTH CENTRAL- 


Ark., La., 


Okla., Tex. 






EAST NORTH CENTRAL-IIL, Ind., Mich., Ohi 


>, Wis. MOUNTAIN—Ariz., Colo.. 1 


iaho. Mon 


t., Nev., N. Me 


c, Utah, Wuo. 




WEST NORTH CENTRAL-lowa, Kans., Minn., 


Mo., Nebr., N. Dak., S. Dak. PACIFIC— Calif., Oreg., Was 


h. 








SOUTH ATLANTIC-Del., D. C, Fla., Co., Md 


, N. C, S. C, Va., W. Va. 











UNITED STATES DEPARTMENT OF COMMERCE 

Daniel C. Roper, Secretary 

BUREAU OF THE CENSUS 

William L Austin. Director 



CENSUS SURVEY OF BUSINESS: 1937-38 



WHOLESALE DISTRIBUTION 



FRUITS AND VEGETABLES (fresh) 



UKM » TE cWS 




DECEMBER, 1938 



This is one of 
Business for the year 193 
identical distributors — 
tables for the years 1935 
1937; and the value of me 
the year 1937 and the fir 
of business, 1935 to 1937 
of sale; and sales for th 



CENSUS SURVEY OF BUSINESS: 1937-38 
Wholesale Distribution 

FRUITS AND VEGETABLES (fresh) 



a series of final reports presenting the findings of the Census Survey of 
7 and the first half of 1936. Contained herein are dollar sales of 1,005 
904 wholesalers and 101 commission merchants — of fresh fruits and vege- 
1936, 1937 and the first half of 1938; pay roll for the years 1955 and 
rchandise on hand at the end of the years 1935, 1936 and 1937. Sales for 
st half of 1933 are shown by quarters. As added features, changes in size 
, are shown; establishments are classified according to their usual terms 
e year 1937 are analyzed to show cash and credit business separately. 



This Survey, unlike regular Censuses of Business, is not intended to present a complete 
picture of the wholesale fruit and vegetable business, but rather to provide a reliable indicator 
of trends since the last Census. It was conducted by mail from lists made up only of establishments 
included in the 1935 Census, all new ones since 1935 being omitted. Those with sales less than 
$25,000 for the year 1935 were likewise omitted, as they account for but a negligible portion of the 
total business. Reporting was purely on a voluntary basis with only one reminder follow up; hence, 
not all establishments contacted submitted returns. This report, in order to provide reliable trend 
information, is further limited to those establishments engaged primarily in selling fresh fruits 
and vegetables at wholesale during the year 1935 and which still operate in a similar manner. 



' 



Three Regular Censuses 

Three regular Censuses of 3usiness have been taken covering the years 1929, 1935 and 1935, 
respectively. Below is a comparison of the number of establishments, service and limited-function 
wholesalers and commission merchants, engaged primarily in selling fresh fruits and vegetables, 
together with their sales. 



Service and Limited- 
Function Wholesalers 



Commission Merchants 





establishments 




Net sales 


1VUU1UC1 UJ. 

establishments 


Net sales 


1929 Census 


5,967 


•11 


,666,047,000 


1,269 


1636,970,000 


1953 Census 


5,421 




739,691,000 


1,274 


457,423,000 


1935 Census 


6,164 




972,532,000 


1,211 


604,514,000 


Percent change 












1929 to 1933 


- 9.2 




- 52.6 


+ 0.4 


- 28.2 


1933 to 1935 


+ 13.7 . 




+ 25.2 


- 4.9 


+ 32.2 



Identical establishments in this Survey: 



1935 
1936 
1937 



904 
904 
904 



288,470,000 
339,153,000 
356,825,000 



101 
1C1 

101 



$ 61,192,000 
64,779,000 
67,733,000 



Percent change, identical establishments 

1935 to 1937 + 23.7 



+ 10.7 



f 



1,200 Million Dollars tor Title-Taking Wholesaler* 

If the 23.7 percent increase in 1937 over 1935, as found in this Survey, is considered 
representative for the trade, the total business of all merchant wholesalers engaged primarily in 
selling fresh fruits and vegetables exceeded $1,200,000,000 in 1957. Likewise, if the 10.7 percent 
increase is representative, the total for commission merchants approximated 670 million dollars. 



Page 2 



Pay Roll Increases 

It is interesting to note that pay roll kept pace with increases in sales between 1935 
and 1937. For service and limited-function wholesalers, salaries and wages were up 23.6 percent 
as compared with an increase of 23.7 percent in business, while for commission merchants the 
rise in pay roll was 13.5 percent and sales 10.7 percent. 



Type of distributor 



Percent increase, 
Sales Pay roll 



1937 over 1935 
Stocks 
(end of year) 



904 Service and limited-function wholesalers 
101 Commission merchants 



23.7 
10.7 



23.6 
13.5 



11.5 
5.7 



Quarterly Sales, 1937 and First Half of 1938 

A measure of the short term trend in the wholesale fresh fruit and vegetable business 
is given in terms of quarterly sales for the year 1937 and the first half of 1938. Quarterly 
sales by geographic divisions and for the 13 largest cities are shown in Table 1. The summary 
for the United States follows: 



Service and Limited- 
Function Wholesalers 



Commission Merchants 



Period 



1st Qr. 1937 

2nd Qr. 1937 

3rd Qr. 1937 

4th Qr. 1937 

1st Qr. 1938 
2nd Qr. 1938 



1st Qr. 1938 vs, 
1st Qr. 1937 

2nd Qr. 1938 vs, 
2nd Qr. 1937 





% change 




fn change 


Net sales 


from 

preceding 

quarters 


Net sales 


from 
preceding 




quarters 


If 83,683,000 


__ 


$17,275,000 


__ 


106,909,000 


+ 27.8 


20,669,000 


+ 19.6 


88,506,000 


- 17.2 


14,587,000 


- 29.4 


77,727,000 


- 12.2 


15,202,000 


+ 4.2 


70,959,000 


- 8.7 


14,145,000 


- 7.0 


92,129,000 


+ 29.8 
Percent change 


17,865,000 


+ 26.3 


- 15.2 




- 18.1 




- 13.8 




- 13.6 





30 Percent Sample 

The 904 title-taking wholesalers included in this Survey represented 15 percent of the 
number and accounted for 30 percent of the business of all merchant wholesalers in 1935 while the 
101 commission merchants represented 8 percent of the number and accounted for 10 percent of 
sales for their classification in 1935. 

Table 3 attached measures the size of the sample included in this Survey in terms of 
the 1935 Census. In this table the number of those included together with their 1935 sales and 
pay roll is compared by geographic divisions and for the 13 largest cities with 1935 totals. 
For convenience in using the information the percent sample, establishments and sales, is repro- 
duced in Tables 1 and 2. 



Table 2 presents comparable information, by geographic divisions and for the 13 cities 
having a population of more than 500,000 in 1930, as to sales and stocks of the merchant whole- 
salers and commission merchants for the years 1935. 1936 and 1937 and on pay roll for the years 
1935 and 1937. 



Page 3 



* 



SIZE OF ESTABLISHMENT 



Of the 904 service and limited-function wholesalers included in this Survey, 832 are class- 
ified as wholesale merchants, 51 as importers, 4 as exporters and 17 as wagon distributors. The 
832 wholesale merchants are arranged according to their 1935 size in Table A, below, where their 
number and sales are compared by size classification with all wholesale merchants for that year. 
As might be expected, a greater percentage of the larger establishments reported for this Survey 
than smaller ones. Thirty nine of 116 merchants (34$) in the $1,000, 000-and-over bracket and 80 of 
the 269 (30$) in the $500,000 - $999,999 group are included as compared with only 100 of the 2,688 
distributors (4$) in the under $50,000 bracket, and 173 of the 946 (18$) in the $50,000 - $99,999 
group. 



TABLE A. -SAMPLE BY SIZE OF ESTABLISHMENT-WHOLESALE MERCHANTS ONLY 





Number of 










Size of establishment 


establ: 


LShments 


Net sales-1935 


Percent sample 


(Net sales in 1935) 


1935 


1937-38 


1935 


1937-38 


Estab- 


Net 




Census 


Survey 


Census 


Survey 


lishments 


sales 


Total 


5,774 


832 


$906,549,000 


$242,166,000 


14 


27 


11,000,000 and over 


116 


39 


220,561,000 


69,012,000 


34 


31 


$500,000 - $999,999 


269 


80 


183,458,000 


53,665,000 


30 


29 


$300,000 - $499,999 


358 


103 


136,716,000 


39,907,000 


29 


29 


(('200, 000 - $299,999 


472 


149 


114,588,000 


36,529,000 


32 


32 


$100,000 - $199,999 


925 


188 


131,265,000 


25,610,000 


20 


20 


$50,000 - $ 99,999 


946 


173 


67,641,000 


12,794,000 


18 


19 


Under $50,000 


2,688 


100 


52,320,000 


3,649,000 


4 


7 



Increases by size, 1937 over 1935 

Percentage increases in sales, pay roll and stocks — 1937 over 1935 — of 832 wholesale 
merchants are shown in Table B, below, by size of establishment. In general, the smaller estab- 
lishments show greater increases in sales than the larger ones. For example, the 100 merchants 
under $50,000 show a gain of 109.4 percent in sales and the 173 from $50,000-to-$100,000 gained 
45.1 percent as compared with 15.7 percent for the $500,000 - $999,999 bracket and 16.2 percent for 
the $1,000, 000-and-over group. Pay roll in the two largest brackets increased more than sales — 
23.6 percent for pay roll as compared with 16.2 percent for sales in the $1,000, 000-and-over group 
and 17.0 percent for pay roll against 15.7 percent for sales in the $500,000 - $999,999 bracket. 



TABLE B. -INCREASES IN SALES AND PAY ROLL, 1937 OVER 1935, 
BY SIZE OF ESTABLISHMENT 



Size of establishment 


Number of 
establishments 


Percent increase, 1937 over 1935 


(Net sales in 1935) 


Sales 


Pay roll 


Total 


832 


+ 23.6 


+ 22.4 


$1,000,000 and over 


39 


+ 16.2 


+ 23.6 


1500,000 - $999,999 


80 


+ 15.7 


+ 17.0 


$300,000 - $499,999 


103 


+ 18.4 


+ 17.9 


$200,000 - $299,999 


149 


+ 28.6 


+ 22.5 


$100,000 - $199,999 


183 


+ 40.2 


+ 24.4 


$ 50,000 - $ 99,999 


173 


+ 45.1 


+ 35.8 


Under $50,000 


100 


+ 109.4 


+ 58.5 



i 



Changes of establishments from one size bracket to another, 1935 to 1937, is shown in 
Table C. In keeping with the general increase in sales the trend was from the lower to the upper 
groups. For example, 54 houses were in the $1,000, 000-and-over group in 1937 as compared with 
only 39 in 1935. On the other hand 51 establishments had sales of less than $50,000 in 1937 as 
compared with 100 in 1935. A total of 333 establishments moved up in classification, while only 
60 dropped to lower groups. Seventy four houses increased as much as two size brackets. 



Page 4 



TABLE C. -NUMBER OF ESTABLISHMENTS BY SIZE CLASSIFICATION; 1935 AND 1937 

WHOLESALE MERCHANTS ONLY 



Size of establishment 
(based on net sales in 1935) 


Number of 
establishments 


(1) 


(2) 


(3) 


(4) 


(5) 


(6) 


(7) 


Total establishments, 1937 
$1,000,000 and over in 1935 


832 

39 


54 
36 


112 
3 


156 


134 


215 


130 


51 


$500,000 - $999,999 in 1935 


80 


16 


57 


6 


1 








$300,000 - $499,999 in 1935 


103 


2 


. 35 


51 


12 


1 


2 




$200,000 - $299,999 in 1935 


149 




17 


56 


56 


20 






$100,000 - $199,999 in 1935 


188 






21 


51 


108 


8 




$ 50,000 - $ 99,999 in 1935 


173 






2 


9 


68 


87 


7 


Under $50,000 in 1935 


100 








5 


18 


33 


44 



of $1,000,000 and over in 1937. 
of $500,000 - $999,999 in 1937. 
of $300,000 - $499,999 in 1937. 
(4) Net sales of $200,000 - $299,999 in 1937. 
of $100,000 - $199,999 in 1937. 
of $ 50,000 - $ 99,999 in 1937. 
of under $50,000 in 1937. 



(1) Net sales 

(2) Nets sales 

(3) Net sales 



(5) Net sales 

( 6) Net sales 

(7) Net sales 



TERMS OF SALE 

The Bureau of the Census collected information in this Survey for the first time on the usual 
terms of sale. Each cooperating establishment vias asked to report its usual credit period and its cus- 
tomary cash discount rate, if any. In addition, sales for the year 1937 were to be analyzed to show 
"spot cash" business; credit sales 10 days or less; and credit of more than 10 days. Houses granting 
discounts for early payment of time sales were asked to report the percentage of their credit sales dis- 
counted in 1937. The results of these inquiries are presented in Tables D and E. Not all houses were 
able to supply the information; hence, the number of establishments in these tables is less than the 
total number included in the Survey. 

Credit Period and Rate of Discount 



Table D classifies 818 service wholesalers and 95 commission merchants according to their 
usual credit periods and cash discount rates. It should be noted that these are the usual terms for 
the houses, and that either or both the credit period and the rate of discount may vary with the com- 
modity sold and with the customer. Also the classification as given here represents the policy of the 
house from which practice may vary. 

Selling on credit for a period of 10 days or less is the commoD practice in the trade. Of 
the 818 merchant wholesalers studied, 308 reported their credit extension as 7 days, and 98 reported 10 
days. Likewise, 47 of the 95 commission merchants sell on a 7 day basis, and 22 customarily extend 
credit for 10 days. Many wholesale merchants, however, extend credit for longer periods, ranging as 
high as 60 days for 8 merchant wholesale establishments. Fresh fruits and vegetables are usually billed 
net although 87 of the merchant wholesalers and 6 of the commission merchants stated that they make a 
practice of granting discounts. 



TABLE D. -ESTABLISHMENTS CLASSIFIED ACCORDING TO USUAL TERMS OF SALE 



Usual Credit Period 



Total 
number of 

estab- 
lishments 



Usual discount rate 



Net" 



1# 



Zfo 



Discount 

granted, 

rate not 

stated 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



Total establishments 


818 


731 


1/8 


2/6 


73 


Spot cash ( credit not 










— 




usually granted) 


58 


58 


— 


— 


— 


7 days 


308 


289 


1 


— 


18 


10 days 


98 


93 


— 


— 


5 


15 days 


2? 


24 


— 


— 


3 


30 days 


66 


45 


5 


5 


11 


60 days 


8 


4 


1 


— 


3 


Combination of periods ** 


168 


152 


1 


— 


15 


Periods not stated 


85 


66 


~ 


1 


18 



TABLE D.~continued 



Usual Credit Period 



Total 
number of 

estab- 
lishments 



Usual discount rate 



Net* 



1% 



2% 



Discount 
granted, 
rate not 

stated 



COMMISSION MERCHANTS 



Total establishments 


95 


89 





__ 


6 


Spot cash (credit not 












usually granted) 


6 


6 


— 


— 


— 


7 days 


47 


46 


— 


— 


1 


10 days 


22 


20 


— 


— 


2 


15 days 


3 


2 


— 


— 


1 


30 days 


5 


4 


— 


— 


1 


60 days 


2 


1 


— 


— 


1 


Combination of periods** 


5 


5 


— 


— 


— 


Periods not stated 


5 


5 


— 


— 


— 



P«ge 5 



* Cash discount not usually granted. 

** Period varies with commodity and customer. 

1/ 2 establishments reported their discount period as 7 days; 6 as 10 days. 

2/ All establishments reported their discount period as 10 days. 

Cash vs. Credit Sales 

The cash-credit division of 1937 sales is given in Table E. More than four-fifths (82.9$) of 
i^.e sales of service and limited- function wholesalers and approximately three-fourths (73.4$) of the 
j isiness of commission merchants was on credit. Slightly more than one-half of the business of merchant 
wholesalers and five-eighths of the sales of commission merchants are on credit for 10 days or less. 
Commission merchants show a slightly larger portion of spot cash business than merchant wholesalers, 
'26.6 percent as compared with 17.1 percent. 



TABLE E. -CASH-CREDIT ANALYSIS OF SALES 
(Sales expressed in thousands oi dollars) 



Usual Credit Period 



Total 



Net 



Usual discount rate 



155 



2% 



Discount 

granted, 

rate not 

stated 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



I 



Number of establishments 


818 


731 


8 


6 


73 


Net sales (1937) 


$315,088 
54,009 


$289,328 


$4,266 
210 


$2,200 
162 


$19,294 


Spot cash 


49,880 


3,757 


Credit 10 days or less 


164,009 


155,950 


245 


242 


7,572 


Credit more than 10 days 


97,070 


83,498 


3,811 


1,796 


7,965 


Percent of net sales 












Spot cash 


17.1 


17.2 


4.9 


7.4 


19.5 


Credit 10 days or less 


52.1 


53.9 


5.7 


11.0 


39.2 


Credit more than 10 days 


30.8 


29.9 


89.4 


81.6 


41.3 




Pei 


cent of credit sa] 


.es discou 


nted 


Percent of all credit sales 












discounted (weighted average) 






61.5 


31.1 


26.7 



Page 6 



TABLE E.~continued 



Usual Credit Period 



Total 



Net 



1% 



2% 



Discount 

granted, 

rate not 

stated 



COMMISSION MERCHANTS 



Number of establishments 


95 


89 


~ 


~ 


6 


Net sales (1937) 


$65,472 


$63,006 


__ 


__ 


$2,466 


Spot cash 


17 ,442 


17,018 


— 


~ 


424 


Credit 10 days or less 


41,428 


39,804 


~ 


— 


1,624 


Credit more than 10 days 


6,602 


6,184 


— 


~ 


418 


Percent of net sales 












Spot cash 


26.6 


27.0 


— 


— 


17.1 


Credit 10 days or less 


63.3 


63 ;2 


— 


— 


65.9 


Credit more than 10 days 


10.1 


9.8 


— 


— 


17.0 



I 



- - 

The current Census Survey of Business includes retail as well as wholesale trade and is 
nation-wide in scope. It is being conducted by the Bureau of the Census with funds provided by 
the Works Progress Administration. The project is under the direction of Fred A. Gosnell, Chief 
Statistician, who was also in charge of previous Business Censuses. Wholesale trade reports are 
prepared under the immediate supervision of John Albright, assisted by James D. Lenig. 



' 



Page 7 



CENSUS SURVEY OF BUSINESS: 1937-38 


WHOLESALE 


DISTRIBUTION 






FRUITS AND VEGETABLES (fresh) 








TABLE l.-NET SALES BY QUARTERS: 1937 AND FIRST HALF OF 1938 






FOR 


IDENTICAL ESTABLISHMENTS BY GEOGRAPHIC DIVISIONS AND THE 13 CITIES WITH 
POPULATION OF MORE THAN 500,000 










Size Of 
















Sample 


No. Of 




Net Sales By Quarters 


Percent 






Compared 


Estab- 


Net 


(»dd ooo) 


Chance 


DIVISION 




With 1935 


lish- 


Sales 






And 
OTY 




Census 


ments 
Includ- 
ed In 


Year 
1937 


1937 


1938 


1st Qr 

1937 

To 


2NDQR 

1937 
To 


Estab- 
lish- 
ments 


Net. 


1ST Qr. 


2nd Qr. 


3rd Qr. 


4th Qr 


1ST Qr 


2nd Qr. 






Sales 


1937-38 
Survey 




Jan. 1 


April 1 


July 1 


Oct 1 


Jan. 1 


April 1 


1st Qr 


2nd Qr. 






% 


% 


(•dd 000) 


Mar. 31 


June 30 


Sept. 30 


Dec 31 


Mar. 31 


June 30 


1938 


1938 


SERVICE AND LIMITED-FUNCTION WHOLESALERS 


UNITED STATES 
New England 




15 


30 


904 


$356, 825 


$83,683 


$106,909 


$88,506 


$77,727 


*70.959 


$92,129 


-15.2 


-13.6 


18 


34 


89 


35,717 


7,849 


11,159 


9,423 


7,286 


6,602 


9,796 


-15.9 


-12.2 


Middle Atlantic 




12 


24 


207 


90,244 


20,855 


26,948 


22,494 


19,947 


18,006 


22,933 


-13.7 


-14.9 


East North Central 




17 


33 


199 


82,179 


19,798 


24,854 


19,544 


17,983 


16,734 


21,822 


-15.5 


-12.2 


West North Central 




11 


17 


57 


22,217 


5,385 


6,749 


5,554 


4,529 


4,588 


5,510 


-14.8 


-18.4 


South Atlantic 




12 


27 


77 


23,871 


5,610 


6,772 


5,796 


5,693 


4,826 


5,578 


-14.0 


-17.6 


East South Central 




14 


33 


32 


11,180 


2,580 


3,231 


2,525 


2,844 


2,662 


2,896 


♦ 3.2 


-10.4 


West South Central 




12 


24 


42 


15,104 


3,856 


4,299 


3,451 


3,498 


3,569 


3,657 


- 7.4 


-14.9 


Mountain 




21 


42 


47 


13,253 


2,831 


3,922 


3,820 


2,680 


2,440 


3,396 


-13.8 


-13.4 


Pacific 




18 


50 


154 


63,060 


14,919 


18,975 


15,899 


13,267 


11,532 


16,541 


-22.7 


-12.8 


13 cities over 500,000 
Boston 


population 


14 


30 


306 


166.761 


39,512 


50,388 


40,444 


36,417 


33,053 


43.211 


-16.3 


-14.2 


17 


39 


24 


17,824 


3,887 


5,677 


4,812 


3,448 


3,378 


5,030 


-13.1 


-11.4 


New York City 




12 


25 


79 


43,916 


10 ,'827 


12,763 


10,610 


9,716 


9,453 


11,072 


-12.7 


-13.3 


Philadelphia 




10 


18 


21 


6,972 


1,507 


2,165 


1,754 


1,546 


1,426 


1,868 


- 5.4 


-13.7 


Pittsburgh 




16 


21 


18 


10,995 


2,293 


3,364 


2,929 


2,409 


1,896 


2,740 


-17.3 


-18.6 


Buffalo 




17 


38 


8 


4,226 


1,023 


1,223 


1,054 


926 


804 


968 


-21.4 


-20.9 


Chicago 




14 


29 


32 


22,203 


5,516 


6,501 


4,998 


5,188 


4,570 


5,578 


-17.2 


-14.2 


Cleveland 




26 


46 


17 


9,879 


2,279 


3,117 


2,355 


2,128 


2,007 


2,576 


-11.9 


-17.4 


Detroit 




16 


29 


14 


7,799 


1,856 


2,274 


1,830 


1,839 


1,543 


2,051 


-16.9 


- 9.8 


Milwaukee 




22 


29 


10 


2,713 


638 


842 


665 


568 


542 


750 


-15.0 


-10.9 


St. Louis 




13 


18 


12 


5,165 


1,425 


1,617 


1,179 


944 


1,057 


1,275 


-25.8 


-21.2 


Bait imore 




11 


27 


10 


4,051 


833 


1,296 


1,073 


849 


661 


1,039 


-20.6 


-19.8 


Los Angeles 




11 


42 


40 


16,800 


3,914 


5,258 


4,089 


3,539 


3,281 


4,875 


-16.2 


- 7.3 


San Franci3Co 




25 


56 


21 


14,218 


3,514 


4,291 


3,096 


3,317 


2,435 


3,389 


-30.7 


-21.0 


COMMISSION MERCHANTS 


UNITED STATES 
New England 




8 


10 


101 


67,733 


17,275 


20,669 


14,587 


15,202 


14,145 


17,865 


-18.1 


-13.6 


V 


1/ 


7 


9,266 


2,357 


2,953 


1,787 


2,159 


1,898 


2,574 


-19.5 


-13.1 


Middle Atlantic 








36 


24,607 


6,881 


7,884 


4,403 


5,439 


5,982 


6,524 


-13.1 


-17.3 


East North Central 




— 


— 


25 


19,169 


5,028 


5,880 


4,150 


4,111 


3,966 


5,219 


-21.1 


-11.2 


South Atlantic 




— 


— 


8 


4,397 


884 


1,135 


1,280 


1,098 


670 


1,004 


-24.2 


-11.5 


Pacific 




— 


— 


17 


9,024 


1,777 


2,442 


2,688 


2,117 


1,371 


2,223 


-22.8 


- 9.0 


Other divisions 




— 


-- 


6 


1,270 


348 


365 


279 


278 


258 


321 


-25.9 


-12.1 


+ Increase - Decrease 








* Percentages in this column represent 1935 sales of 


establishments included in this survey, divided by total 1935 sales of each classificatior 


I. 




\J 1935 figures not available for calculating percent sai 


nple by geographic divisions. 










State* Comprising Geographic Divisions: 






NEW ENCLAND-Conn., 


Maine, Mais., N. H., R. 1., VI. 


EAST SOUTH CENTRAL- Ala., Ky., Miss., Tern. 






MIDDLE ATLANTIC--N. 


J., N. Y., Pa. 


WEST SOUTH CENTRAL-Ark., La., Okla., Tex. 






EAST NORTH CENTRAL -III, Ind., Mich., Ohio, Wis. 


MOUNTAIN— Ariz.. Colo.. Idaho, Mont.. Neo.. N. Me* . U 


(ah, Wyo. 




WEST NORTH CENTRAL -Iowa, Kan.., Minn., Mo., Nebr., 


N. Dak., S. Dak. PACIFIC— Calif., Oreg.. Wash. 






SOUTH ATLANTIC -Del. 


D C, Fla., Ca 


, Md., 1 


J. c, s. 


C, Va., U 


'. Va. 



















Page 8 



CENSUS SURVEY OF BUSINESS: 1937-38 

FRUITS AND VEGETABLES (fresh) 






WHOLESALE 


DISTRIBUTION 




TABLE 2.-SALES, PAY ROLL AND STOCKS: 1937, 1936 AND 1935 








FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS AND THE 13 CITIES WITH 






POPULATION OF MORE THAN 500,000 










DIVISION 

AND 
CITY 


Size Of 

Sample 

Compared 

With 1935 

Census 


No. Of 
Estab- 
lish- 
ments 

Includ- 
ed In 

1937-38 
Survey 


Net Sales 

(add 000 ) 


Pay Roll** 
(add ooo) 


Stocks On Hand 
End Of Year 

(add 000) 


Percent Increase 
1935 to 1937 


ESTAB. 
LISH- 
MENTS 

% 


Net* 
Sales 

% 


1937 


1936 


1935 


1937 


1935 


1937 


1936 


1935 


Net 
Sales 


Pay 

Roll 


Stocks 


SERVICE AND LIMITED-FUNCTION WHOLESALERS 


UNITED STATES 
New England 


15 


30 


904 


$356,825 


$339,153 


$288,470 


$17,644 


$14,280 


$7,091 


$7,539 


$6,359 


23.7 


23.6 


11.5 


18 


34 


89 


35,717 


32,340 


28,649 


1,715 


1,458 


315 


326 


307 


24.7 


17.6 


2.6 


Middle Atlantic 


12 


24 


207 


90,244 


85,234 


73,958 


3,881 


3,082 


2,330 


2,513 


2,053 


22.0 


25.9 


13.5 


East North Central 


17 


33 


199 


82,179 


78,908 


63,968 


3,824 


2,990 


1,342 


1,376 


1,041 


28.5 


27.9 


28.9 


West North Central 


11 


17 


57 


22,217 


22,325 


18,396 


978 


803 


476 


515 


318 


20.8 


21.8 


49.7 


South Atlantic 


12 


27 


77 


23,871 


23,002 


18,291 


1,395 


1,085 


519 


564 


486 


30.5 


28.6 


6.8 


East South Central 


14 


33 


32 


11,180 


10,371 


8,906 


594 


523 


225 


227 


216 


25.5 


13.6 


4.2 


West South Central 


12 


24 


42 


15,104 


14,228 


11,800 


853 


706 


243 


267 


241 


28.0 


20.8 


0.8 


Mountain 


21 


42 


47 


13,253 


12,475 


10,787 


744 


655 


463 


403 


379 


22.9 


13.6 


22.2 


Pacific 


18 


50 


154 


63,060 


60,270 


53,715 


3,660 


2,978 


1,178 


1,348 


1,318 


17.4 


22.9 


-10.6 


13 cities over 500,000 






























population 
Boston 


14 


30 


306 


166,761 


159,430 


134,723 


6,957 


5,580 


2,831 


2,909 


2,538 


23.8 


24.7 


11.5 


17 


39 


24 


17,824 


16,688 


13,762 


698 


584 


91 


89 


71 


29.5 


19.5 


28.2 


New York City 


12 


25 


79 


43,916 


40,675 


36,513 


2,136 


1,701 


1,702 


1,891 


1,566 


20.3 


25.6 


8.7 


Philadelphia 


10 


18 


21 


6,972 


7,313 


5,561 


260 


200 


46 


46 


53 


25.4 


30.0 


-13.2 


Pittsburgh 


16 


21 


18 


10,995 


10,337 


8,116 


322 


233 


150 


77 


64 


35.5 


38.2 


134.4 


Buffalo 


17 


38 


8 


4,226 


4,114 


3,769 


102 


78 


45 


75 


79 


12.1 


30.8 


-43.0 


Chicago 


14 


29 


32 


22,203 


21,885 


18,364 


946 


777 


268 


220 


195 


20.9 


21.8 


37.4 


Cleveland 


26 


46 


17 


9,879 


9,255 


7,118 


286 


222 


84 


63 


69 


38.8 


28.8 


21.7 


Detroit 


16 


29 


14 


7,799 


7,124 


5,910 


204 


162 


33 


41 


16 


32.0 


25.9 


106.3 


Milwaukee 


22 


29 


10 


2,713 


2,664 


2,378 


120 


96 


27 


30 


30 


14.1 


25.0 


-10.0 


St. Louis 


13 


18 


12 


5,165 


5,391 


4,190 


233 


201 


60 


64 


44 


23.3 


15.9 


36.4 


Baltimore 


11 


27 


10 


4,051 


3,985 


2,625 


127 


76 


9 


11 


8 


54.3 


67.1 


12.5 


Los Angeles 


11 


42 


40 


16,800 


15,835 


14,250 


837 


638 


167 


156 


86 


17.9 


31.2 


94.2 


San Francisco 


25 


56 


21 


14,218 


14,164 


12,167 


686 


612 


149 


146 


257 


16.9 


12.1 


-42.0 


COMMISSION MERCHANTS 


UNITED STATES 
New England 


8 


10 


101 


67 , 733 


64,779 


61,192 


2,435 


2,146 


371 


356 


351 


10.7 


13.5 


5.7 


1/ 


1/ 


7 


9,266 


9,017 


9,075 


326 


273 


20 


10 


36 


2.1 


19.4 


-44.4 


Middle Atlantic 




— 


38 


24,607 


24,433 


24,250 


751 


727 


132 


145 


127 


1.5 


3.3 


3.9 


East North Central 


— 


— 


25 


19,169 


17,572 


14,709 


619 


480 


143 


130 


116 


30.3 


29.0 


23.3 


South Atlantic 





— 


8 


4,397 


3,291 


3,388 


152 


134 


23 


22 


18 


29.8 


13.4 


27.8 


Pacific 


— 


— 


17 


9,024 


9,119 


8,636 


547 


492 


48 


45 


45 


4.5 


11.2 


6.7 


Other divisions 


— 


— 


6 


1,270 


1,347 


1,134 


40 


40 


5 


4 


9 


12.0 


0.0 


-44.4 


- Decrease 












* Percentages in this column re] 


>resent 1935 sales of establishments included in this survey, divided by total 1 


935 sales 


>f each cla 


isification. 




* * Pay roil not available for yea 


1936. Pay roll includes compensation of both full-time and part-time employ 


ees, but no 


t of propri 


:tors and firm me 


■nbers of 


unincorporated businesses. 












\J 1935 figures not available for 


calculating percent sample by geographic divisions. 

States Comprising Geographic Divisions: 










NEW ENCLAND-Conn., Maine, 


Won., N. H., R. /., VI. EAST SO 


JTH CENTR 


AL-Ala.. K[ 


., Miss., Tenn. 




MIDDLE ATLANTIC-N. !., N. Y 


, Pa. WEST SO 


VTH CENT/ 


IAL-.AA., U 


i., Okla., Tex. 




EAST NORTH CENTRAL-IU., U 


d., Mich., Ohio, WU. MOUNTAl 


N~Arlz., Co 


0.. Idaho. M 


Mil.. Nra., N. Met., 


Utah, Woo. 


WEST NORTH CENTRAL -Iowa, 


Kane., Minn., Mo., Near., N. Dah., S. Doli. PACIFIC— 


Cull/., Ores., 


Wash. 






SOUTH ATLANTIC-Del, D. C, 


Fla.. Ca 


, Mi., 1 


*. c, s. c. 


Va., W. V 


3. 





















I! 



Page 9 



CENSUS SURVEY OF BUSINESS: 1937-38 WHOLESALE DISTRIBUTION 

FRUITS AND VEGETABLES (fresh) 

TABLE 3.-SIZE OF SAMPLE 

1937 SURVEY COMPARED WITH 1935 CENSUS 

ESTABLISHMENTS, SALES AND PAY ROLL BY GEOGRAPHIC DIVISIONS 

AND THE 13 CITIES WITH POPULATION OF MORE THAN 500,000 


DIVISION 
And 
CITY 


Number Of 
Establishments 


Net Sales 
[wM 000 ) 


Pay Roll* 

(add OOO) 


1935 

Census 


Included in 
1937-38 
Survey 


1935 
Census 


1935 Sales Of 
Those Included 
In 1937-38 Survey 


1935 
Census 


1935 Pay Roll Of 
Those Included 
In 1937-38 Survey 


Number L * „ 
Sample 


Amount 


% 
Sample 


Amount 


% 
Sample 


SERVICE AND LIMITED-FUNCTION WHOLESALERS 


UNITED STATES 

New England 
Middle Atlantic 
East North Central 
West North Central 
South Atlantic 
East South Central 
West South Central 
Mountain 
Pacific 

13 Cities over 500,000 Population 


6,164 


904 


15 


$973,532 


$388,470 


30 


$47,973 


$14,280 


30 


498 
1,695 
1,150 
517 
635 
232 
354 
228 
865 

2,191 


89 
207 
199 

57 
77 

32 

42 

47 

154 

306 


18 
12 
17 
11 
12 
14 
12 
21 
18 

14 


83,068 

309,391 

194,407 

107,397 

68 , 506 

26 , 653 

49,207 

25,832 

108,071 

455,816 


28,649 
73,958 
63,968 
18,396 
18 , 391 
8,906 
11,800 
10 , 787 
53,715 

134,723 


34 
34 
33 
17 
27 
33 
24 
42 
50 

30 


4,309 
12,923 
8,799 
5,578 
4,001 
1,348 
3,075 
1,636 
6,315 

19,213 


1,458 

3,082 

2,990 

803 

1,085 

523 

706 

655 

2,978 

5,580 


34 
24 
34 
14 
27 
39 
23 
40 
47 

29 


Boston 

New York City 

Philadelphia 

Pittsburgh 

Buffalo 

Chicago 

Cleveland 

Detroit 

Milwaukee 

St. Louis 

Baltimore 

Los Angeles 

San Francisco 


141 

633 

210 

111 

46 

225 

65 

90 

46 

93 

90 

356 

85 


24 
79 
21 
18 
8 
32 
17 
14 
10 
12 
10 
40 
21 


17 
12 
10 
16 
17 
14 
26 
16 
22 
13 
11 
11 
25 


35,307 

145,853 

30 , 539 

38,631 

9,974 
63,550 
15,494 
30 , 313 

8,160 
22,733 

9,648 
34,068 
21,548 


13,762 

36,513 

5,561 

8,116 

3,769 

18,364 

7,118 

5,910 

2,378 

4,190 

2,625 

14,250 

12,167 


39 
25 
18 
21 
38 
29 
46 
29 
29 
18 
27 
42 
56 


1,627 

6,767 

1,065 

791 

264 

3,689 

538 

658 

343 

990 

387 

1,971 

1,133 


584 

1,701 

200 

233 

78 
777 
222 
162 

96 
201 

76 
638 
612 


36 
35 
19 
39 
30 
39 
43 
35 
38 
30 
30 
33 
54 


COMMISSION MERCHANTS 


UNITED STATES 


1/1,211 


101 


8 


1/ 604,514 


61,192 


10 


1/ 12,664 


2,146 


17 


* Pay roll includes compensation of full-time and part-time employees, but not of proprietors and firm members of unincorporated businesses. 

1 / 1935 Census figures not available by geographic divisions. 

States Comprising Geographic Divisions: 

NEW ENCLAND-Conn., Maine, Mass., N. H., R. 1., Vl. EAST SOUTH CENTRAL-Ala., Ky., Miss., Tenn. 

MIDDLE ATLANTIC-N. J., N. Y., Pa. WEST SOUTH CENTRAL-Ark, La., OUa., Tex. 

EAST NORTH CENTRAL-IIL, Ind., Mich., Ohio, Wis. MOUNTAIN— Ariz.. Colo.. Idaho. Mont.. Neo.. N. Mex., Utah, Wyo. 

WEST NORTH CENTRAL .Iowa, Kans., Minn., Mo., Nebr., N. Dak., S. Dak. PACIFIC— Calif., Oreg., Wash. 

SOUTH ATLANTIC-Del., D. C, Fla., Ga., MA., N. C, S. C, Va., W. Va. 



«' 



* 



f ry 



UNITED STATES DEPARTMENT OF COMMERCE 

Daniel C. Roper, Secretary 

BUREAU OF THE CENSUS 

William L. Austin. Director 



CENSUS SURVEY OF BUSINESS: 1937-38 



WHOLESALE DISTRIBUTION 



GROCERIES (full line ) 



BUREAU OF THE CENSUS 




NOVEMBER, 1938 



CENSUS SURVEY OF BUSINESS: 1937-38 
Wholesale Distribution 



GROCERIES (full-line) 

This is one of a series of final reports presenting the findings of the Census Survey of 
Business for the year 1937 and the first half of 1938. Contained herein are dollar sales of identical 
full-line grocery wholesalers for the years 1935, 1936, 1937 and the first half of 1938; pay roll for 
the years 1935 and 1937; and the value of stocks on hand at the end of the years 1935, 1936 and 1937. 
Sales for the year 1937 and the first half of 1938 are shown by quarters. As added features, changes 
in the size of establishments, 1935 to 1937, are shown; wholesalers are classified according to their 
' usual terms of sale; and sales for the year 1937 are analyzed to show cash and credit business sepa- 
rately. 

Unlike regular Censuses of Business, this Survey is not intended to present a complete pic- 
ture of the full-line grocery trade, but rather to provide a reliable indicator of trends since the 
last Census. It was conducted by mail from lists made up only of establishments included in the 1935 
Census, all new ones since 1935 being omitted. Those with sales less than $25,000 for the year 1935 
were likewise omitted, as they account for but a negligible portion of the total business. Reporting 
was purely on a voluntary basis with only one reminder follow-up; hence, not all wholesalers contact- 
ed submitted returns. This report, in order to provide reliable trend information, is further limit- 
ed to tnose establishments engaged primarily in selling a full line of groceries at wholesale during 
the year 1935 and which still operate in a similar manner. 

Three Regular Censuses 

Three regular Censuses of Business have been taken covering the years 1929, 1933 and 1935, 
/Respectively. Below is a comparison of the number of service and limited-f unction (cash-and-carry, 
iretailer-cooperative and wagon distributor) wholesalers engaged primarily in selling a full line of 
groceries, together with their sales, pay roll and stocks on hand at the end of the year. 

Number of 





establishments 


Net sales 


Pay roll 


(6nd of year) 


1929 Census* 


5,743 


$2,938,579,000 


1144,626,000 


$ 386, 262, 000 


1933 Census 


3,744 


1,436,920,000 


76,000,000 


201,691,000 


1935 Census 


3,833 


1,953,762,000 


98,077,000 


242,071,000 


Percent change 










1929 to 1933* 


- 34.9 


- 51.1 


- 47.5 


- 47.7 


- 1933 to 1935 


+ 2.4 


+ 36.0 


+ 29.0 


* 19.9 



Identical establishments in this Survey: 

1935 1,069 $ 693,801,000 $ 38,547,000 $ 90,997,000 

1936 1,069 761,517,000 Not available 106,958,000 

1937 1,069 612,204,000 44,974,000 106,647,000 

Percent change, identical establishments 

1935 to 1937 +17.1 +16.7 +17.2 



36 Percent Sample 



The 1,059 wholesalers included in this Survey represented 28 percent of the total number and 
accounted for 36 percent of the sales of all service and limited-function wholesalers handling a full 
line of groceries in 1935. 



Whe classification was broader in 1929 than in 1933 and 1935, as it included a number of establish- 
ments later reclassified as specialty houses. 



Page 2 



Table 3, attached, measures the size of the sample included in this Survey in terms of the 
1935 Census. In this table the number of those included, together with 1935 sales and pay roll, is 
compared by geographic divisions with the totals in 1935. For convenience in using the information 
the percent sample, of establishments and sales, is reproduced in Tables 1 and 2. 

Table 2 presents comparable information by geographic divisions as to sales and stocks of 
the 1,069 wholesalers for the years 1935, 1936 and 1937, and on pay roll for the years 1935 and 1937 

Quarterly sales, 1937 and the first half of 1938 

A measure of the 3hort-term trend in the full-line grocery trade is given in terms of quar- 
terly sales of the 1,069 establishments for the year 1937 and the first half of 1938. Quarterly salesj 
by geographic divisions are shown in Table 1. The summary for the United States follows: 



Period 


Net sales 


Percent change from 
preceding quarter 


1st Qr. 1937 
2nd Qr. 1937 
3rd Qr. 1937 
4th Qr. 1937 


$193,672,000 
203,861,000 
216,902,000 
197,769,000 


+ 5.3 
+ 6.4 
- 8.8 


1st Qr. 1938 
2nd Qr. 1938 


177,663,000 
185,001,000 


- 10.2 

+ 4.1 






Classes of Wholesalers 



Of the 1,069 houses included in this Survey, 720 are classified as wholesale merchants (se 
vice wholesalers not sponsoring voluntary groups), 170 as voluntary group wholesalers, 131 as cash- 
and-carry depots and 48 as retailer-cooperative warehouses — owned and operated by independent re- 
tailers. Percentage increases in dollar sales, payroll and stocks, 1937 over 1935, for each class 
of establishment is given below: 



9 



Type of operation 



Total (1,069 establishments) 

Wholesale merchants (720 establishments) 
Voluntary group wholesalers (170 establishments) 
Cash-and-carry depots (131 establishments) 
Retailer-cooperative warehouses (48 establishments) 



Percent increase, 1937 over 1935 



Net sales 



17.1 
17.9 
13.3 
22.1 
22.8 



Pay roll 



16.7 
16.5 
15.9 
10.2 
24.6 



Stocks 
(end of year) 



17.2 
16.6 
15.7 
16.7 
27.8 



SIZE OF ESTABLISHMENT 



The 720 wholesale merchants included in this Survey are arranged according to 1935 size in 
Table A, below, where their number and 3ales are compared by size classification with all wholesale 
merchants handling a full line of groceries for that year. The percent sample (percent of 1935 to- 
tal reporting for 1937), both of establishments and sales, is smallest in the under $100,000 bracket, 
and increases with the size of establishment. Only 14 percent of the establishments in the under 
$100,000 bracket are included in the Survey as compared with 18 percent for the $100,000 to $199,999 
group; 24 percent for the $200,000 to $499,999 bracket and 29 percent for the $500,000 to $999,999 
bracket. For the $1,000,000 and over group, where 56 of a total of 332 establishments are included, 
the sample dropped slightly to 19 percent. The largest sample in terms of sales is in the $500,000| 
to $999,999 bracket, 29 percent, while the smallest is in the under $100,000 group, 15 percent. 



> 



Page 3 



TABLE A. -SAMPLE BY SIZE OF ESTABLISHMENT-- WHOLESALE MERCHANTS ONLY 



Size of establishment 


Number of 
establishments 


Net sales-1935 
(add 000) 


Percent sample 


(Net sales in 1935) 


1935 
Census 


1937-38 
Survey 


1935 
Census 


1937-38 
Survey 


Estab- 
lishments 


Net 
sales 


Total 
#1,000,000 and over 
$500,000 - $999,999 
$200,000 - #499,999 
$100,000 - $199,999 
Under #100,000 


3.210 
332 
627 

1,335 
591 
325 


720 
64 
181 
322 
108 
45 


$1,707,024 

734,751 

429,407 

434,912 

86,737 

21,217 


$402,259 

148,703 

125,672 

108,051 

16,633 

3,200 


22 
19 
29 
24 
18 
14 


24 
20 
29 
25 
19 
15 



Increases by size, 1937 over 1935 



Percentage increases in sales , pay roll 
eluded in this Survey are shown in Table B, below, 
note that for each of the four classifications (wh 
cash-and-carry depots and retailer-cooperative war 
creases in sales than the larger ones. For exampl 
$100,000 gained 29.4 percent and those $100,000 to 
pared with only 18.0 percent for the $500,000 to 
over bracket. Similarly, retailer-cooperative und 
22.0 percent for those $500,000 and over. 



and stocks — 1937 over 1935 — of wholesalers in- 

by size of establishment. It is interesting to 
olesale merchants, voluntary group wholesalers, 
ehouses) smaller establishments show greater in- 
e, sales of the 45 wholesale merchants under 
$199,999 show an increase of 35.2 percent as com- 
,999 and 15.0 percent for the $1,000,000 and 
er $500,000 gained 34.5 percent as compared with 



i 



TABLE' B. -INCREASES IN SALES, PAY ROLL AND STOCKS, 1937 OVER 1935, 
BY SIZE OF ESTABLISHMENT 



Size of establishment 
(Net sales in 1935) 



Number of 

estab- 
lishments 



Percent increase, 1937 over 1935 



Sales 



Pay roll 



Stocks 



WHOLESALE MERCHANTS 



Total 


720 


17.9 


16.5 


16.6 


$1,000,000 and over 


64 


15.0 


15.6 


16.0 


$500,000 - $999,999 


181 


18.0 


18.0 


16.9 


$200,000 - $499,999 


322 


18.7 


16.2 


15.2 


$100,000 - $199,999 


108 


35.2 


21.0 


31.0 


Under $100,000 


45 


29.4 


10.6 


15.1 



VOLUNTARY GROUP WHOLESALERS 



Total 


170 


13.3 


15.9 


15.7 


$1,000,000 and over 


58 


13.9 


16.8 


16.1 


$500,000 - $999,999 


59 


10.4 


12.7 


14.2 


Under $500,000 


53 


14.6 


13.2 


17.1 



CASH-AND-CARRY DEPOTS 



Total 


131 


22.1 


10.2 


16.7 


$200,000 and over 


21 


19.2 


14.0 


12.4 


$100,000 - $199,999 


69 


20.2 


3.0 


13.8 


Under $100,000 


41 


33.5 


25.0 


36.6 



♦ 



RETAILER-COOPERATIVE WAREHOUSES 



Total 


48 


22.8 


24.6 


27.8 


$500,000 and over 


32 


22.0 


24.5 


26.6 


Under $500,000 


16 


34.5 


25.5 


42.6 



Page 4 



Changes in size brackets, 1935 to 1937, are shown in Table C for the 720 wholesale 
merchants. In keeping with the general increase in sales, the trend was from the lower to 
the upper groups. For example, 99 houses were in the $1,000, 000-and-over group in 1937 as 
compared with only 64 in 1935. On the other hand, 36 houses had sales of less than $100,000 
in 1937, as compared with 45 in 1935. A total of 166 moved up in classification, while only 
18 dropped to lower groups. Five establishments increased as much as two size brackets. 

TABLE C. --NUMBER OF ESTABLISHMENTS BY SIZE CLASSIFICATION; 1935 AND 1937 

(Wholesale merchants only) 



Size of establishment 
(based on net sales) 


Total 
estab- 
lishments 
1935 


$1000000 

and over 

in 1937 


$500000 

to 
$999999 
in 1937 


$200000 

to 
#4yS999 
in 1937 


$100000 

to 
$199999 
in 1937 


Under 
$100000 
in 1937 


Total establishments, 1937 


720 


11 


211 


300 


74 


36 


$1,000,000 and over in 1935 


64 


62 


1 


1 






|500,000 - #999,999 in 1935 


181 


36 


138 


7 






$200,000 - $499,999 in 1935 


322 


1 


71 


243 


7 




$100,000 - $199,999 in 1935 


108 




1 


46 


59 


2 


Under $100,000 in 1935 


45 






3 


8 


34 



TERMS OF SALE 

The Bureau of the Census collected information in this Survey for the first time 
on the usual terms of sale. Each cooperating establishment was asked to report its usual 
credit period and its customary cash discount rate, if any. In addition, sales for the year 
1937 were to be analyzed to show "spot cash" business; credit sales 10 days or less and 
credit of more than 10 days. Houses granting discounts for early payment of time sales were 
asked to report the percentage of their credit sales discounted in 1937. The results of 
these inquiries are presented in Tables D and E. Not all houses were able to supply the in- 
formation; hence, the number of establishments in these tables is less than the total number 
included in the Survey. 



Credit period and rate of discount 

Table D classifies 635 wholesale merchants, 154 voluntary group wholesalers and 42 
retailer-cooperative warehouses according to usual credit periods and cash discount rates. 
It should be noted that these are the usual terms for the houses, and that either or both 
the credit period and the rate of discount may vary with the commodity sold and with the 
customer. Also the classification as given here represents the policy of the house from 
which practice may vary. A variety of credit periods appear in the wholesale grocery trade, 
no one of which (except 7 days for retailer-cooperative warehouses) predominates. Thirty 
days is the most frequent period for wholesale merchants and voluntary group wholesalers, 
although 62 of the 154 wholesalers sponsoring voluntary groups report a combination of cred- 
it periods. 

As shown in Table D, groceries are billed net for the most part. Two percent is 
the most frequent single rate of cash discount for wholesale merchants as compared with only 
one percent for voluntary group wholesalers and retailer-cooperative warehouses. Fifty-seven 
wholesale merchants stated that their rates varied with commodities and customers, no one 
rate prevailing. Many houses — 112 wholesale merchants, 22 voluntary group wholesalers and 
7 retailer-cooperative warehouses — indicated that they granted cash discounts but failed to 
report a prevailing rate. 



i 



Page 5 



TABLE D. - ESTABLISHMENTS CLASSIFIED ACCORDING TO USUAL TERMS OF SALE 



Usual Credit Period 



Total 
number of 

estab- 
lishments 



Usual discount rate 



Net" 



1% 



2% 



Other 
rates 



Combina- 
tion of 
rates** 



WHOLESALE MERCHANTS 



VOLUNTARY GROUP WHOLESALERS 



RETAILER-COOPERATIVE WAREHOUSES 



Discount 

granted , 

rate not 

stated 



Total establishments 


635 


286 


1/68 


£/ll2 




_57 


112 


Spot cash (credit not 






usually granted) 


40 


38 










2 


7 days 


53 


49 










4 


10 days 


15 


13 










2 


15 days 


44 


34 




2 






6 


30 days 


201 


61 


47 


60 




27 


6 


60 days 


12 


1 


2 


9 








Combination of periods*** 


101 


70 


3 


1 




18 


9 


Periods not stated 


169 


20 


14 


40 




12 


83 



Total establishments 


154 


84 


5/22 


i/l5 


11 




22 


Spot cash (credit not 
















usually granted) 


7 


7 












7 days 


11 


10 










1 


10 days 


6 


2 






4 






15 days 


22 


18 


2 


1 






1 


30 days 


41 


10 


14 


9 


6 




2 


Other periods 


5 


5 












Combination of periods*** 


62 


32 


6 


5 


1 




18 



Total establishments 


42 


27 


8 








7 


7 days 


19 


16 


1 








2 


10 days 


7 


2 


5 










15 days 


2 




2 










30 days 


3 


2 










1 


Combination of periods*** 


11 


7 










4 



* Cash discount not usually granted. 

** Rate differs with commodity and customer; no single rate predominating. 

***Period varies with commodity and customer. 

1/ 9 establishments report their discount period as 10 days; 41 as 15 days; 9 as 30 days; 

and 9 as a combination of periods. 
2/ 14 establishments report their discount period as 10 days; 59 as 15 days; 13 as 30 days; 

and 26 as combination of periods. 
3/ 20 establishments report their discount period as 10 days; 2 as 15 days. 
4/ 9 establishments report their discount period as 10 days; 3 as 15 days; and 3 as 30 days, 



Cash vs. credit sales 



The cash-credit division of 1937 sales is given in Table E. Approximately two- 
■thlrds of the sales of wholesale merchants (65.3$) and of voluntary group wholesalers (65.0%) 
are on credit for a period of more than 10 days as compared with one-fifth (19.1%) for retail- 
er-cooperative warehouses. Spot cash represents approximately one-tenth of the total for all 



Page 6 



three classes of establishments. It is interesting to note that retailer-cooperative warehouses col- 
lect on four-fifths (80.9$) of their sales in 10 days or less. In general, discount rates are asso- 
ciated with longer credit periods. 

TABLE E. -CASH-CREDIT ANALYSIS OF SALES 
(Sales expressed in thousands of dollars) 



Usual Credit Period 



Total 



Usual rate of discount 



Net 



1% 



2<fc 



Other 
rates 
(3-5 
etc. ) 



Combina- 
tion of 
rates 



Discount 

granted , 

rate not 

stated 



WHOLESALE MERCHANTS 



Number of establishments 


635 


286 


68 


112 




57 


112 


Net sales (1937) 


$426 ,447 


$164,486 
28,584 


$51,246 


$68,553 
8,405 




$71,181 
4,539 


$70,981 


Spot cash 


52,182 


3,481 


7,173 


Credit 10 days or less 


95,867 


38,348 


11,615 


12,020 




14,056 


19,828 


Credit more than 10 days 


278,398 


97,554 


36,150 


48,128 




52,586 


43,980 


Percent of net sales 
















Spot cash 


12.2 


17.4 


6.8 


12.3 




6.4 


10.1 


Credit 10 days or less 


22.5 


23.3 


22.7 


17.5 




19.7 


27.9 


Credit more than 10 days 


65.3 


59.3 


70.5 


70.2 




73.9 


62.0 






Percent of cr 


edit sales discounted 




Percent of all credit sales 










discounted (weighted average 


) 


45.1 


40.7 | 58.9 


45.0 



VOLUNTARY GROUP WHOLESALERS 



Number of establishments 


154 


84 


22 


15 


11 




22 


Net sales (1937) 


$216,357 


$ 95,624 


$64,459 


$10,484 


$14,793 




$30,997 


Spot cash 


24,801 


18,501 


3,399 


840 


872 




1,189 


Credit 10 days or less 


50,992 


25,624 


10,563 


3,366 


4,227 




7,212 


Credit more than 10 days 


140,564 


51,499 


50,497 


6,278 


9,694 




22,596 


Percent of net sales 
















Spot cash 


11.5 


19.3 


5.3 


8.0 


5.9 




3.8 


Credit 10 days or less 


23.5 


26.8 


16.4 


32.1 


28.6 




23.3 


Credit more than 10 days 


65.0 


53.9 


78.3 


59.9 


65.5 




72.9 






Percent of cr 


edit sal* 


2s discounted 




Percent of all credit sales 












discounted (weighted average 


) 


31.2 


48.3 


60.7 | 


55.4 



RETAILER-COOPERATIVE WAREHOUSES 



Number of establishments 


42 


27 


8 








7 


Net sales (1937) 


$ 74,191 


$ 44,926 


$ 9,292 








$19,973 


Spot cash 


8,227 


7,755 


154 








318 


Credit 10 days or less 


51,830 


32 , 602 


1,657 








17,571 


Credit more than 10 day3 


14,134 


4,569 


7,481 








2,084 


Percent of net sales 
















Spot cash 


11.0 


17.2 


1.7 








1.6 


Credit 10 days or less 


69.9 


72.6 


17.8 








88.0 


Credit more than 10 days 


19.1 


10.2 


80.5 








10.4 






Percent of credit sales discounted 


Percent of all credit sales 










discounted (weighted average 


> 




88.7 








91.1 



I 



Page 7 



Credit sales discounted 

The extent to which customers take advantage of cash discounts where allowed 
is also shown in Table E. Wholesale merchants selling on a one percent basis granted 
discounts on 45.1 percent of their 1937 credit sales and those granting two percent el- 
low discount on 40.7 percent. Similarly, voluntary group wholesalers selling on a one 
percent basis discounted 31.2 percent of their sales as compared with 48.3 percent for 
those granting two percent cash discount. 

- - 

The current Census Survey of Business includes retail as well as wholesale 
trade and is nation-wide in scope. It is being conducted by the Bureau of the Census 
with funds provided by the Works Progress Administration. The project is under the 
direction of Fred A. Gosnell , Chief Statistician, who was also in charge of previous 
3usiness Censuses. Wholesale trade reports are prepared under the immediate supervi- 
sion of John Albright, assisted by James D. Lenig. 



I 



Page 8 

CENSUS SURVEY OF BUSINESS: 1937-38 



WHOLESALE DISTRIBUTION 



GROCERIES ( full-line i 

TABLE l.-NET SALES BY QUARTERS: 1937 AND FIRST HALF OF 1938 

FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 



DIVISION 



Size Of 

Sample 

Compared 

With 1935 

Census 



Estab- 
lish 
ments 



Net. 
Sales 



No. Of 
Estab- 
lish- 
ments 

Includ- 
ed In 

1937-38 
Survey 



Net 
Sales 
Year 
1937 



(odd 000 ) 



Net Sales By Quarters 
(add ooo) 



1937 



1ST QR. 

Jan. 1 
Mar. 31 



2ND QR. 

April 1 
June 30 



3RD QR. 

July 1 
Sept. 30 



4TH QR. 

Oct. 1 
Dec. 31 



1938 



1ST Qr. 

Jan. 1 
Mar. 31 



2ND QR. 

April 1 
June 30 



Percent 
Chance 



1st Qr. 

1937 

To 
1st Qr 

1938 



2NDQR 
1937 
To 

2nd Qr 
1938 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



UNITED STATES 

Wholesale merchants 
Voluntary group wholesalers 
Cash-and-carry depots 
Hetailer-cooperative warehouses 

Geographic Divisions 

New England 
Middle Atlantic 
East North Central 
West North Central 
South Atlantic 
East South Central 
West South Central 
Mountain 
Pacific 



88 



28 
35 
23 
36 
20 
20 
30 
33 
44 



36 



23 
45 
36 
40 
23 
20 
34 
44 
45 



1,069 



$812 , 204 



720 

170 

131 

48 



48 
155 
155 
136 
130 

81 
194 

56 
114 



474,175 

236,290 

21 , 501 

80,238 



25,579 

175,023 

149,708 

114,055 

61,876 

40,927 

107,319 

41,299 

96,418 



$193,672 



$203, 861 



113,099 

55,911 

5,182 

19,480 



5,883 
42 , 104 
34,839 
26,781 
15,099 
10,157 
26,818 

8,726 
23,265 



120,116 

58,822 

5,489 

19,434 



6,430 
44,356 
36 , 751 
28,338 
15,651 
10,483 
27,497 
10,363 
23,992 



$216,902 



1197,769 



127,204 

62,978 

5,788 

20,932 



7,051 
44,741 
40,147 
32,120 
16,096 
10,804 
27,786 
11,776 
26,381 



113,756 

58,579 

5,042 

20 , 392 



6,215 
43,822 
37,971 
26,816 
15,030 

9,483 
25,218 
10,434 
22,780 



$177,663 



$185,001 



102,099 

51 , 586 

4,783 

19,195 



5,638 
38,925 
31 , 726 
24,075 
13,848 

8,719 
24,564 

7,810 
22 , 358 



106,646 

54,115 

4,924 

19,316 



6,224 
39,006 
33,045 
26,476 
13,891 

8,865 
24,657 

9,056 
23,781 



8.3 



9.7 

7.7 
7.7 
1.5 



- 4.2 

- 7.6 

- 8.9 
-10.1 

- 8.3 
-14.2 

- 8.4 
-10.5 

- 3.9 



9.3 



-11.2 

- 8.0 
-10.3 

- 0.6 



- 3 
-12 
-10 

- 6 
-11 
-15 
-10.3 
-12.6 

- 0.9 



Decrease 

Percentages in this column represent 1935 sales of establishments included in this survey, divided by total 1935 sales of each classification. 

States Comprising Geographic Divisions: 
NEW ENCLAND-Conn., Maine, Mass., N. H., R. I., VI. EAST SOUTH CENTRAL -Ala., Kj/., Miss., Tenn. 

MIDDLE ATLANTIC-N. J., N. Y., Pa. WEST SOUTH CENTRAL- Ark., La., Okha., Tex. 

EAST NORTH CENTRAL .111, Ind., Mich., Ohio, Wis. 

WEST NORTH CENTRAL- Iowa, Kans., Minn., Mo., Nebr., N. Dak., S. Dak. 
SOUTH ATLANTIC -Del, D. C, Fla., Ca., Md., N. C, S. C, Va., W. Va. 



MOUNTAIN— Ariz.. Colo., Idaho. Mont.. Nev.. N. Mex.. Ulah, Wyo. 
PACIFIC— Calil, Oreg., Wash. 



CENSUS SURVEY OF BUSINESS: 1937-38 



Page ° 

WHOIJ3AI.E DISTRIBUTION 



GROCERIES (full-line) 

TABLE 2.- SALES, PAY ROLL AND STOCKS: 1937, 1936 AND 1935 

FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 



DIVISION 



Size Of 

Sample 

Compared 

With 1935 

Census 



Estab- 
lish- 
ments 



Net- 
Sales 



No. Of 
Estab- 
lish- 
ments 

Includ- 
ed In 

1937-38 
Survey 



Net Sales 

Ldd 000) 



1937 



1936 



1935 



Pay Roll* 1 
(add ooo) 



1937 



1935 



Stocks On Hand 
End Of Year 

Udd ooo) 



1936 



1935 



Percent Increase 
1935 io 1937 



Net 
Sales 



Pay 
Roll 



Stocks 



SERVICE AND L1MITEDFUNCTI0N WHOLESALERS 



UNITED STATES 

Wholesale merchants 
Voluntary group wholesalers 
Cash-and-carry depots 
Retailer-cooperative 

warehouses 

Geographic Divisions 

Hew England 
Middle Atlantic 
East North Central 
West North Central 
South Atlantic 
East South Central 
West South Central 
Mountain 
Pacific 



28 

35 
23 
36 
£0 
20 
30 
33 
44 



36 



23 

45 
36 

40 
23 
20 

34 
44 
45 



720 
170 
131 

48 



48 
155 
155 
136 
130 

81 
194 

56 
114 



5812,204 



474,175 

236,290 

21,501 

80,238 



25,579 

175,023 

149,708 

114,055 

61,876 

40,927 

107,319 

41,299 

96,418 



$761,517 



444,532 

222,997 

20,934 

73,054 



24,107 

162,021 

140,260 

110,896 

58,673 

38,251 

100,843 

39,057 

87,409 



$693,801 



402,259 

208,591 

17,614 

65,337 



22,236 

152,014 
131,208 
97,614 
54,723 
32,940 
88,856 
34,985 
79,225 



$44,974 



25,821 

16,189 

433 

2,531 



1,644 
10,764 
10,691 
6,170 
2,869 
1,846 
4,443 
1,916 
4,631 



$38,547 



22,157 

13,965 

393 

2,032 



1,450 
8,918 
9,374 
5,396 
2,521 
1,577 
3,804 
1,644 
3,863 



$106,647 



62,583 

33,600 

1,464 

9,000 



3,688 
22,406 
20,401 
15,657 

7,155 

4,833 
12,819 

7,192 
12,496 



$106,958 



63,149 

33,744 

1,457 

8,608 



3,606 
22,341 
20,147 
16,400 

7,141 

5,173 
13,740 

6,194 
12,216 



$90,997 



53,669 

29,031 

1,255 

7,042 



3,223 

19,277 

17,520 

13,590 

6,177 

4,071 

10,917 

5,653 

10,569 



17.1 



17.9 
13.3 
22.1 

22.8 



15.0 
15.1 
14.1 
16.8 
13.1 
24.2 
20.8 
18.0 
21.7 



16.7 



16.5 
15.9 
10.2 

24.6 



13.4 
20.7 
14.0 
14.3 
13.8 
17.1 
16.8 
16.5 
19.9 



17.: 



16.6 

15.7 
16.7 

27.8 



14.4 
16.2 

16.4 
15.2 
15.8 
18.7 
17.4 
27.2 
18.2 



* Percentages in this column represent 1935 sales of establishments included in this survey, divided by total 1935 sales of each classification. 
* * Pay roll not available for year 1936. Pay roll includes compensation of full-time and part-time employees, but not of proprietors and firm members of 
unincorporated businesses. 

Sfafei Comprising Geographic Dioitiont: 
NEW ENCLAND-Conn., Main.. Mau., N. H.. R. I.. VI. 
MIDDLE ATLANTIC -N. J., N. Y„ Pa. 
EAST NORTH CENTRAL-IIL. Ini, Mich., Ohio, Wii. 

WEST NORTH CENTRAL- Iowa, Kant., Minn., Mo., fV.br., N. Dak., S. Dak, 
SOUTH ATLANTIC -Del., D C Flo , Co., Mi., N. C. S. C, Va., W. Va. 



EAST SOUTH CENTRAL -Ala.. Ko.. Mln. T«nn. 

WEST SOUTH CENTRAL-Ark., La., Okla., Tex 

MOUNTAIN— Aril.. Colo.. Mono. Monl., Neo.. N. Met.. Utah. Woo. 

PACIFIC— Calil, Oreo.. Waeh 



J" 



Page 10 

CENSUS SURVEY OF BUSINESS: 1937-38 



GROCERIES (full-line) 

TABLE 3.-SIZE OF SAMPLE 

1937 SURVEY COMPARED WITH 1935 CENSUS 

ESTABLISHMENTS, SALES AND PAY ROLL BY GEOGRAPHIC DIVISIONS 



WHOLESALE DISTRIBUTION 



DIVISION 



Number Of 
Establishments 



1935 

Census 



Included in 
1937-38 
Survey 



Number 



Sample 



Net Sales 

I »dd 000) 



1935 

Census 



1935 Sales Of 
Those Included 
In 1937-38 Survey 



Amount 



Sample 



Pay Roll* 

(add 000) 



1935 
Census 



1935 Pay Roll Of 
Those Included 
In 1937-38 Survey 



Amount 



Sample 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



PUTTED STATES 

Wholesale merchants 
Voluntary group wholesalers 
Cash-and-carry depots 
Retailer-cooperative warehouses 

Geographic Divisions 

New England 
Middle Atlantic 
East North Central 
West North Central 
South Atlantic 
East South Central 
West South Centrel 
Mountain 
Pacific 



3,833 



172 
446 
676 
380 
659 
415 
652 
172 
261 



1,069 



720 

170 

131 

48 



48 
155 
155 
136 
130 

81 
194 

56 
114 



28 



28 
35 
23 
36 
20 
20 
30 
33 
44 



tl, 953, 762 



95,247 
337,523 
360,426 
246,509 
232,962 
160,897 
262 , 264 

80,311 
177,623 



$693,801 



402,259 

208,591 

17,614 

65,337 



82,236 

152,014 
131,208 
97,614 
54,723 
32,940 
88,856 
34,985 
79,225 



36 



23 
45 
36 
40 
23 
20 
34 
44 
45 



$98,077 



6,225 
17,504 
20,868 
13,333 
10,303 

6,991 
11,281 

3,805 

7,767 



$38.547 



22,157 

13,965 

393 

2,032 



1,450 
8,918 
9,374 
5,396 
2,521 
1,577 
3,804 
1,644 
3,863 



39 



23 
51 
45 
40 
24 
23 
34 
43 
50 



Pay roll includes compensation of full-time and part-time employees, but not of proprietors and firm members of unincorporated businesses. 

States Comprising Geographic Divisions: 
VI. 



NEW ENCLAND-Conn.. Mains, Mass., N. H.. R. I. 

MIDDLE ATLANTIC-N. J., N. Y., Pa. 

EAST NORTH CENTRAL-llL, Ind., Mich., Ohio, Wis. 

WEST NORTH CENTRAL .Iowa, Kans., Minn., Mo.. Nebr., N. Dak, S. Dak 

SOUTH ATLANTIC-Del., D. C, Fla., Co., Md., N. C, S. C, Va., W. Va. 



EAST SOUTH CENTRAL -Ala., Kit., Miss.. T.nn. 
WEST SOUTH CENTRAL-Ark, La., Okla., Tex. 
MOUNTAIN—Atu.. Colo.. Idaho. Mont., Ntv.. N. Mix., Utah. Wuo. 
PACIFIC— Call/., Ortg.. Wash. 



II 



•i 



/ V V CL 



UNITED STATES DEPARTMENT OF COMMERCE 

Harry L. Hopkins, Secretary 

BUREAU OF THE CENSUS 

William L. Austin. Director 



CENSUS SURVEY OF BUSINESS: 1937-38 



WHOLESALE DISTRIBUTION 



HARDWARE 



BUREAU OF THE CENSUS 




JANUARY, 1939 



•-,' :-. - 






* 



CENSUS SURVEY OF BUSINESS: 
Wholesale Distribution 

HARDWARE 



1937-38 



This is one of a series of final reports presenting the findings of the Census 
Survey of Business for the year 1937 and the first half of 1938. Contained herein are dol- 
lar sales of 271 identical hardware wholesalers — 175 full-line and 96 specialty line 
houses — for the years 1935, 1936, 1937 and the first half of 1938; pay roll for the years 
1935 and 1937; and the value of stocks on hand at the end of the years 1935, 1936 and 1937. 
Sales for the year 1937 and the first half of 1938 are shown by quarters. As added fea- 
tures, changes in size of business, 1935 to 1937, are shown; establishments are classified 
according to their usual terms of sale ; and sales for the year 1937 are analyzed to show 
cash and credit business separately. 

This Survey, unlike regular Censuses of Business is not intended to present a 
complete picture of the wholesale hardware trade, but rather to provide a reliable indica- 
tor of trends since the last Census. It was conducted by mail from lists made up only of 
establishments included in the 1935 Census, all new ones being omitted. Those with sales 
of less than $25,000 for the year 1935 were likewise omitted, as they constitute but a 
small portion of the total sales. Reporting was purely on a voluntary basis with only one 
reminder follow-up; hence, not all wholesalers who were contacted submitted returns. This 
report, in order to provide reliable trend information, is further limited to those estab- 
lishments engaged primarily in selling hardware at wholesale during the year 1935 and which 
continue to operate in a similar manner. 

y/iree Regular Censuses 

Three regular Censuses of Business have been taken covering the years 1929, 1933 
and 1935, respectively. Below is a comparison of the number of wholesalers (service and 
limited-function) engaged primarily in the hardware trade, together with their sales, pay 
roll and stocks on hand at the end of the year. 



1929 Census 
1933 Census 
1935 Census 

Percent change 
1929 to 1933 
1933 to 1935 



1935 
1936 
1937 



1935 to 1936 

1936 to 1937 



Number of 
establishments 


Net sales 


Pay roll 


Stocks 
(end of year) 


1,249 
1,176 
1,129 


$714,528,000 
342,066,000 
428,249,000 


$75,593,000 
39,147,000 
46,178,000 


#169,500,000 
115,162,000 
106,980,000 


- 5.8 

- 4.0 


- 52.1 
+ 25.2 


- 48.2 
+ 18.0 


- 32.1 

- 7.1 


in this Survey: 
271 
271 
271 


$162,374,000 
190,049,000 
210,033,000 


$18,157,000 
Not available 
22,767,000 


$39,434,000 
45,251,000 
47,402,000 


1 establishments 


+ 17.0 

+ 10.5 


— 


+ 14.8 
+ 4.8 



1935 to 1937 



+ 29.4 



+ 25.4 



+ 20.2 



Page 2 



38 Percent Sample 



i 



The 271 wholesalers included in this Survey represented 24 percent of the total 
number and accounted for 38 percent of the sales of all service and limited-function hardware 
wholesalers in 1935. Table 3 measures the size of the sample in this Survey in terms of the 
1935 Census. In this table the number of those included, together with their 1935 sales and 
pay roll, is compared by geographic divisions with the totals in 1935. For convenience in 
using the information the percent sample, establishments and sales, is reproduced in Tables 1 
and 2. 



Table 2 presents comparable information by geographic divisions as to sales and in- 
ventories of the 271 wholesalers for the years 1935, 1936 and 1937, and on pay roll for the 
years 1935 and 1937. 



Quarterly Sales, 1937 and First Half of 1938 



A measure of the short-term trend in the hardware trade is given in terms of quar- 
terly sales of the 271 establishments for the year 1937 and the first half of 1938. Quarter- 
ly sales by geographic divisions are shown in Table 1. The summary for the United States 
follows : 





Full- 


line 


Specialty lines 






fa change 




% change 


Period 


Net sales 


from 

preceding 

quarter 


Net sales 


from 

preceding 

quarter 


Number of establishments 


175 




96 




1st Qr. 1937 


$44,218,000 


••_ 


$3,797,000 


— — 


2nd Qr. 1937 


52,953,000 


+ 19.8 


4,269,000 


+ 12.4 


3rd Qr. 1937 


51,504,000 


- 2.7 


4,002,000 


- 6.3 


4th Qr. 1937 


45 , 645 , 000 


- 11.4 


3,645,000 


- 8.9 


1st Qr. 1938 


36,172,000 


- 20.8 


2,965,000 


- 18.7 


2nd Qr. 1938 


42,644,000 


+ 17.9 
Percent 


3,220,000 
change 


+ 8.6 


1st Qr. 1937 to 1st Qr. 1938 


- 18.2 




- 21.9 




2nd Qr. 1937 to 2nd Qr. 1938 


- 19.5 




- 24.6 




1st half 1937 to 1st half 1938 


- 18.9 




- 23.3 





Sales, Pay Roll and Stocks, 1937 Over 1935 

Of the 271 establishments included in this Survey, 175 are classified as full-line 
wholesalers, and 96 as specialty line houses (specializing in heavy hardware, light or shelf 
hardware, tools and cutlery, etc.). Percentage increases in dollar sales, pay roll and 
stocks, 1937 over 1935, for each class of establishment is given below. 



Type of establishment 



Total (271 establishments) 



Full-line (175 establishments) 
Specialty line (96 establishments) 



Percent increase, 1937 over 1935 

« 4. n t> n StOCkS 

Net sales Pay roll , , . TO „„\ 

(end of year) 



29.4 

28.6 
39.8 



25.4 

24.5 
35.3 



20.2 

19.6 
28.9 



Page 3 



» 



SIZE OF ESTABLISHMENT 



Of the 175 full-line wholesalers Included in the Survey, 168 are classified as wholesale merchants 
of the conventional type", 3 as voluntary group wholesalers, 1 as an exporter, 2 as importers and 1 as a 
limited-function wholesaler. Likewise, of the 96 specialty line establishments 93 are wholesale merchants, 
1 is an exporter and 2 are importers. The wholesale merchants of each classification are arranged accord- 
ing to 1935 size in Table A, below, where their number and sales are compared by size classification with 
their respective totals for that year. 

As shown in Table A, the percent sample measured in terms of establishments (percent of 1935 
total reporting for this Survey) is largest in the upper bracket and decreases with size of business. For 
example, 40 percent of the full-line merchants with sales of $500,000 or more in 1935 are included as com- 
pared with only 18 percent of those with sales less than $200,000. More than 30 percent of the specialty 
line merchants with sales of #500,000 or more are included as compared with only 10 percent of those less 
than $50,000. 

TABLE A. -SAMPLE BY SIZE OF ESTABLISHMENT-WHOLESALE MERCHANTS ONLY 



Size of establishment 


Number of 
establishments 


Net sales-1935 
(add 000) 


Percent sample 


(Net sales in 1935) 


1935 
Census 


1937-38 
Survey 


1935 
Census 


1937-38 
Survey 


Estab- 
lishments 


Net 
sales 



FULL-LINE 



Total 


599 


168 


$377,568 


$142 , 958 


28 


38 


$1,000,000 and over 


84 


34 


215,823 


91,050 


40 


42 


$500,000 - $999,999 


102 


41 


72,418 


28,859 


40 


40 


$300,000 - $499,999 


104 


33 


40,888 


13,002 


32 


32 


$200,000 - $299,999 


113 


25 


27 ,452 


6,088 


22 


22 


Under $200,000 


196 


35 


20,987 


3,959 


18 


19 



SPECIALTY LINES 



> 



Total 


500 


93 


$ 39,796 


$ 10,491 


19 


26 


$200,000 and over 


51 


16 


18,983 


4,911 


31 


26 


$100,000 - $199,999 


57 


18 


7,938 


2,336 


32 


29 


$50,000 - $99,999 


99 


31 


6,959 


2,268 


31 


33 


Under $50,000 


293 


28 


5,916 


976 


10 


16 



Increases By Size, 1937 Over 1935 

Percentage increases in sales, pay roll and stocks — 1937 over 1935 — of establishments in- 
cluded in this Survey are shown in Table B, below, by size of establishment. It is interesting to note 
that for the two classifications (full -line and specialty lines) smaller establishments show greater in- 
creases in sales than the larger ones. For example, in the full-line classification the 35 wholesale es- 
tablishments under $200,000 show a gain of 44.2 percent as compared with only 24.0 percent for the 
$500,000 - $999,999 group, and 30.0 percent for the $l,000,000-and-over bracket. Similarly, specialty 
line houses under $50,000 gained 57.1 percent as compared with 39.7 percent for those $200,000 and over. 

TABLE B. -INCREASES IN SALES, PAY ROLL AND STOCKS, 1937 OVER 1935, 
BY SIZE OF ESTABLISHMENT 



^ 



Size of establishment 
(Net sales in 1935) 



Number of 
establishments 



Percent increase, 1957 over 1935 



Sales 



Pay roll 



Stocks 
(end of year) 



FULL-LINE 



Total 


168 


28.6 


24.7 


19.6 


$1,000,000 and over 


34 


30.0 


25.5 


18.8 


$500,000 - $999,999 


41 


24.0 


21.8 


23.7 


$300,000 - $499,999 


33 


30.2 


22.2 


17.8 


$200,000 - $299,999 


25 


32.6 


29.9 


13.7 


Under $200,000 


35 


44.2 


27.4 


21.3 



SPECIALTY LINES 



Total 


93 


41.6 


33.7 


29.4 


$200,000 and over 


16 


39.7 


42.4 


35.5 


$100,000 - $199,999 


18 


39.3 


29.5 


36.4 


$50,000 - $99,999 


31 


41.4 


18.1 


10.6 


Under $50,000 


28 


57.1 


49.6 


35.6 



Page 4 



Changes of establishments from one size bracket to another, 1935 to 1937, are shown 
in Table C for the 168 full-line and 93 specialty line wholesale merchants. In keeping with 
the general increase in sales, the trend was from the lower to the upper groups. For example, 
43 of the 168 full-line houses were in the $l,000,000-and-over group in 1937 as compared with 
only 34 in 1935. On the other hand, 26 houses had sales of less than $200,000 in 1937 as com- 
pared with 35 in 1935. A total of 52 moved up in classification, while only 3 dropped to low- 
er groups. Four full-line establishments increased as much as two size brackets. Similarly, 
for specialty line houses there were 23 establishments with sales over $200,000 in 1937 as com- 
pared with only 16 in 1935, and 15 houses had sales of less than $50,000 in 1937 compared with 
28 in 1935. A total of 38 moved up in classification while only 5 dropped to lower groups. 



< 



TABLE C -NUMBER OF SERVICE WHOLESALERS BY SIZE CLASSIFICATION; 1935 AND 1937 

( Wholesale merchants only ) 



Size of establishment 
(based on net sales) 



Total 
estab- 
lishments 
1935 



$1,000,000 

and over 

in 1937 



$500,000- 

$999,999 

in 1937 



$300,000- 

$499,999 

in 1937 



$200,000- 

$299,999 

in 1937 



Under 
$200,000 
in 1937 



FULL-LINE 



Total establishments, 1937 
$1,000,000 and over 
$500,000 - $999,999 
$300,000 - $499,999 
$200,000 - $299,999 
Under $200,000 



168 
34 
41 
33 
25 
35 



43 
9 



47 

32 
15 



39 



ii 

19 
4 



13 



26 



26 



SPECIALTY LINES 



Size of establishment 
(based on net sales) 



Total 
estab- 
lishments 
1935 



$200,000 

and over 

in 1937 



$100,000- 

$199,999 

in 1937 



$50,000- 
$99,999 
in 1937 



Under 
$50,000 
in 1937 



Total establishments, 1937 
$200,000 and over 
$100,000 - $199,999 
$50,000 - $99,999 
Under $50,000 



93 
16 
18 
31 
28 



23 
8 



26 
1 
7. 

16 
2 



29 

3 
14 
12 



15 



1 
14 



TERMS OF SALE 

The Bureau of the Census collected information in this Survey for the first time on 
the usual terms of sale. Each cooperating establishment was asked to report its usual credit 
period and its customary cash discount rate, if any. In addition, sales for the year 1937 were 
to be analyzed to show "spot cash" business; credit sales, 10 days or less; and credit of more 
than 10 days. Houses granting discounts for early payment of time sales were asked to report 
the percentage of their credit sales discounted in 1937. The results of these inquiries are 
presented in Tables D and E. Not all houses were able to supply the information; hence, the 
number of establishments in these tables is less than the total number included in this Survey. 



Credit Period And Rate Of Discount 



Table D classifies 168 full-line wholesalers and 92 specialty line establishments ac- 
cording to usual credit periods and cash discount rates. It should be noted that these are the 
usual terms for the houses, and that either or both the credit period and the rate of discount i 
may vary with the commodity sold and with the customer. Also the classification as given here " 
represents the policy of the houses from which practice may vary. 



Page 5 



Common credit periods for both full-line and specialty line houses are 30 days and 60 days. Of 
}the 168 full-line establishments studied, 71 reported 30 days, 66 reported 60 days while 31 failed to 
state their usual credit period. Similarly, 53 specialty line houses reported their usual credit period 
as 30 days, 19 as 60 days while 20 failed to report this information. The prevailing discount rate for 
the hardware trade is 2 percent as shown by the fact that 148 of the 168 full-line houses and 75 of the 
92 specialty line establishments usually sell on this basis. 

TABLE D.--ESTABLISHMENTS CLASSIFIED ACCORDING TO USUAL TERMS OF SALE 



Usual Credit Period 



Total 
number of 

estab- 
lishments 



Usual discount rate 



Net* 



1% 



Combina- 
tion of 

rates** 



Discount 

granted, 

rate not 

stated 



FULL-LINE 



Total establishments 
30 days 


168 
71 


5 
2 




i/l48 

64 


6 
4 


9 

1 


60 days 


66 


2 


— 


60 


2 


2 


Periods not stated 


31 


1 


— 


24 


— 


6 



SPECIALTY LINES 



Total establishments 


92 


8 


2/4 


3/75 


2 


3 


30 days 


53 


6 


4 


42 


1 


— 


60 days 


19 


— 


— 


17 


1 


1 


Periods not stated 


20 


2 


— 


16 


— 


2 



* Cash discounts not usually granted. 
** Rate differs with commodity and customer. 

1/ 144 establishments reported their discount period as 10 days; 1 as 15th proximo, 2 as 30 days and 1 as 
60 days. 
Wz/ All establishments reported their discount period as 10 days. 
3/ 72 establishments reported their discount period as 10 days, 3 as 30 days. 

Cash vs. Credit Sales 

The cash-credit division of 1937 sales is given in Table E. Over nine-tenths of the business 
of both classes of establishment is on credit for more than 10 days, 90.2 percent for full-line wholesal- 
ers and 91.6 percent for specialty line houses. The remainder of the business is about equally divided 
between "spot cash" and credit of 10 days or less. 



TABLE E.--CASH-CREDIT ANALYSIS OF SALES 
(Sales expressed in thousands of dollars) 



Usual Credit Period 



Total 



Net 



Usual rate of discount 



Combina- 
tion of 
rates 



Discount 

granted, 

rate not 

stated 



* 



FULL-LINE 



Number of establishments 


168 


5 


148 


6 


9 


Net sales (1937) 


$189,141 


$6,127 
537 


$163,150 
6,240 


$12,179 
854 


$7,685 


Spot cash 


8,170 


539 


Credit 10 days or less 


10,314 


— 


8,012 


2,067 


235 


Credit more than 10 days 


170,657 


5,590 


148,898 


9,258 


6,911 


Percent of net sales 












Spot cash 


4.3 


8.8 


3.8 


7.0 


7.0 


Credit 10 days or less 


5.5 


— 


4.9 


17.0 


3.1 


Credit more than 10 days 


90.2 


91.2 


91.3 


76.0 


89.9 



Percent of credit sales discounted 



Percent of all credit sales 
discounted (weighted average) 



58.8 



70.0 



49.7 



Page 6 



TABLE E.-continued 





Usual rate of discount 


Usual Credit Period 


Total 


Net 


1* 


2% 


Combina- 
tion of 
rates 


Discount 

granted , 

rate not 

stated 


SPECIALTY LINES 






Number of establishments 


92 


8 


4 


75 


2 


3 


Net sales (1937) 
Spot cash. 


$15,113 
581 


$886 

45 


$1,222 
7 


$11,496 
505 


$1,201 
9 


|313 
15 


Credit 10 days or less 


692 


— 


118 


298 


276 


— 


Credit more than 10 days 


13,845 


841 


1,097 


10,693 


916 


298 


Percent of net sales 














Spot cash 


3.8 


5.1 


0.6 


4.4 


0.7 


4.8 


Credit 10 days or less 


4.6 


— 


9.6 


2.6 


23.0 


— 


Credit more than 10 days 


91.6 


94.9 


89.8 


93.0 


76.3 


95.2 




Percent o 


f credit 


sales discounted 




Percent of all credit sales 










discounted (weighted average) 

1 




63.2 


47.1 


67.3 


43.5 


Credit Sales Discounted 















The extent to which customers take advantage of cash discounts where allowed is also f 
shown in Table E. Full-line houses selling on a 2 percent basis granted discounts on 58.8 per- " 
cent of their 1937 credit sales. Similarly, specialty line establishments on a 2 percent basis 
discounted 47.1 percent of their sales as compared with 63.2 percent for those granting a cash 
discount of 1 percent. 



- - 



The current Census Survey of Business includes retail as well as wholesale trade and is 
nation-wide in scope. It is being conducted by the Bureau of the Census with funds provided by 
the Works Progress Administration. The project is under the direction of Fred A. G-osnell, Chief 
Statistician, who was also in charge of previous Business Censuses. Wholesale trade reports are 
prepared under the immediate supervision of John Albright, assisted by James D. Lenig. 



1 



CENSUS SURVEY OF BUSINESS: 1937-38 



Page 7 

WHOLESALE DISTRIBUTION 



HARDWARE 

TABLE l.-NET SALES BY QUARTERS: 1937 AND FIRST HALF OF 1938 

FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 



KIND OF BUSINESS 

And 

DIVISION 



Sample 


NO OF 


Based on 


Estab 


1935 


LISH 


Census 


MENTS 


Estab- 


*■ 


Report 


lish- 


Net 


INC 


ments 


Sales 


1937-38 


<£ 


% 


Survey 



Net 
Sales 
Year 
1937 

- add 000 I 



Net Sales By Quarters 

( «dd 000 ) 



1ST QR 

Jan. 1 
Mar. 31 



2ND Qr 

April 1 
June 30 



3rd Qr 

July 1 

Sept. 30 



4TH QR 

Oct. 1 
Dec. 31 



1938 



1ST QR 

Jan. 1 
Mar. 31 



2nd Qr 

April 1 
June 30 



Percent 
Chance 



1st Qr 

1937 

To 
1ST Qr 

1938 



2NDQR 
1937 
To 

2NDQR 
1938 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



UNITED STATES 

Hardware (full line) 
Hardware (specialty llr.es) 

Hardware (full line) 
New England 
Middle Atlantic 
East North Central 
West North Central 
South Atlantic 
East South Central 
West South Central 
Mountain 
Pacific 

Hardware (specialty lines) 
Middle Atlantic 
East North Central 
Vest North Central 
Pacific 
Other divisions 



24 



30 

33 
30 
34 
IS 
18 
29 
32 
39 



20 
17 
19 
19 

16 



36 



47 
43 
52 

46 
18 
17 
35 
47 
36 



33 

26 
34 
23 
15 



271 



$210,033 



175 
96 



194,320 
15,713 



8,044 
30,989 
54,771 
34,821 
9,427 
6,550 
17,465 
10,463 
21,790 



8,477 
3,016 
1,278 
1,292 
1,650 



#48,015 



44,218 
3,797 



1,645 
7,235 
11,845 
8,284 
2,286 
1,648 
3,880 
2,210 
5,185 



,045 
737 

305 
321 
389 



$57,222 



52,953 
4,269 



2,295 
8,777 
15,008 
9,326 
2,499 
1,723 
4,396 
2,863 
6,066 



2,222 
813 
390 

388 
456 



$55,506 



51 , 504 
4,002 



2,042 
7,790 
14,594 
9,539 
2,439 
1,625 
4,896 
2,868 
5,711 



2,109 
792 
346 
326 
429 



$49,290 



45,645 
3,645 



2,062 
7,187 
13,324 
7,672 
2,203 
1,554 
4,293 
2,522 
4,828 



2,101 
674 
237 
257 

376 



♦39,137 



36,172 
2,965 



1,364 
5,931 
9,068 
6,544 
1,952 
1,485 
3,755 
1,777 
4,296 



,580 
513 
277 
265 
330 



$45,864 



42,644 
3,220 



1,964 
7,322 
11,302 
7,323 
1,906 
1,422 
4,161 
2,208 
5,036 



1,722 
547 
282 
291 

378 



-18.5 



-18.2 
-21.9 



-17.1 
-18.0 
-23.4 
-21.0 
-14.6 

- 9.9 

- 3.2 
-19.6 
-17.1 



-22.7 
-30.4 
- 9.2 
-17.4 
-15.2 



- Decrease 

Percentages in this column represent 1935 sales of establishments included in this survey, divided by total 1935 sales of each classification. 

Slates Comprising Geographic Di 
NEW ENCLAND-Conn.. Maine, Mass., N. H.. R. I.. Vl. 
MIDDLE ATLANTIC-N. J., N. Y., Pa. 
EAST NORTH CENTRAL...IIL, Ind., Mich., Ohio, Wis. 

WEST NORTH CENTRAL- Iowa, Kans., Minn., Mo., Nebr., N. Dak., S. Dak. 
SOUTH ATLANTIC-DeL, D. C, Fla., Ca., Mi., N. C, S. C, Va., W. Va. 



EAST SOUTH CENTRAL -Ala.. Ky.. Mis,.. Tenn. 

WEST SOUTH CENTRAL-Ark., La., Okla., Tex. 

MOUNTAIN— Ariz.. Colo.. Idaho. Mont., Neu., N. Met.. Utah, Wyo. 

PACIFIC— Calil., Ores., Wash. 



-19.9 



-19.5 
-24.6 



-14.4 
-16.6 
-24.7 
-21.5 
-23.7 
-17.5 
- 5.3 
-22.9 
-17.0 



-22.5 
-32.7 
-27.7 
-25.0 
-17.1 



P age 8 

CENSUS SURVEY OF BUSINESS: 1937-38 



HARDWARE 

TABLE 2.- SALES, PAYROLL AND STOCKS: 1937, 1936 AND 1935 
FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 



WHOLESALE DISTRIBUTION 



KIND OF BUSINESS 

And 

DIVISION 



Sample 


No. OF 


Based on 


Estab. 


1935 


LISH- 


Census 


MENTS 


Estab 


» 


Report 


L1SH- 


Net 


INC 


MENTS 
% 


Sales 

% 


1937-38 
Survey 



Net Sales 
(add ooo) 



1937 



1936 



1935 



Pay Roll** 
(add ooo) 



1937 



1935 



Stocks On Hand 
End Of Year 

(add 000) 



1937 



1936 



1935 



Percent Increase 
1935 io 1937 



Net 
Sales 



Pay 
Roll 



Stocks 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



UNITED STATES 

Hardware (full line) 
Hardware (specialty lines) 

Hardware (full line) 
New England 
Middle Atlantic 
East North Central 
West North Central 
South Atlantic 
East South Central 
West South Central 
Mounta in 
Pacific 

Hardware (specialty lines) 
Middle Atlantic 
East North Central 
West North Central 
Pacific 
Other divisions 



24 



30 
33 
30 
34 
18 
18 
29 
32 
39 



20 
17 
19 
19 
16 



38 



39 
27 



47 
43 
52 
46 
18 
17 
35 
47 
36 



33 
26 
34 
23 

15 



271 



175 
96 



$210,033 



194,320 
15,713 



8,044 
30,989 
54,771 
34,821 
9,427 
6,550 
17,465 
10,463 
21,790 



8,477 
3,016 
1,278 
1,292 
1,650 



$190,049 



$162,374 



176,630 
13,419 



7,554 
26,977 
50,604 
33,924 

8,843 

5,633 
14,851 

9,528 
18,716 



7,270 
2,537 
1,194 
1,103 
1,315 



$22,767 



151,136 
11,233 



6,673 
23,559 
41,017 
29,839 

7,556 

5,566 
12 , 158 

8,087 
16,681 



5,954 
2,009 
1,148 
823 
1,304 



•18,157 



20,692 
2,075 



950 
3,663 
6,199 
3,742 

963 

554 
1,525 

907 
2,190 



1,116 
409 
190 
151 
209 



16,623 
1,534 



824 
2,856 
4,765 
3,248 

790 

523 
1,201 

731 
1,685 



829 
267 
177 
92 
169 



$47,402 



43 , 918 
3,484 



2,245 
6,553 
11,806 
7,555 
2,828 
1,311 
3,852 
2,147 
5,621 



1,753 
571 
335 
426 

399 



$45,251 



$39,434 



42,148 
3,103 



2,142 
6,152 
11,504 
7,797 
2,779 
1,270 
3,411 
2,045 
5,048 



1,599 
504 
305 
365 

330 



36,732 
2,702 



2,005 
5,422 
9,376 
6,761 
2,285 
1,269 
3,206 
1,837 
4,571 



1,321 
411 
309 
313 

348 



29.4 



28.6 
39.8 



20.5 
31.5 
33.5 
16.7 
24.8 
17.7 
43.7 
29.4 
30.6 



42.4 
50.1 
11.3 
57.0 
26.5 



25.4 



24.5 
35.3 



15.3 
28.2 
30.1 
15.2 
21.9 
5.9 
27.0 
24.1 
30.0 



34.6 

53.2 

7.3 

64.1 

23.7 



20.2 



19.6 
26.9 



12.0 
20.9 
25.9 
11.7 
23.8 
3.3 
20.1 
16.9 
23.0 



32.7 
38.9 
8.4 
36.1 
14.7 



* Percentages in this column represent 1935 sales of establishments included in this survey, divided by total 1935 sales of each classification. 
** Pay roll not available for year 1936. Pay roll includes compensation of full-time and part-time employees, but not of proprietors and firm members of 
unincorporated businesses. 



NEW ENCLAND-Conn., Maine. Ma,,., N. H.. R. I.. VI. 
MIDDLE ATLANTIC-N. J., N. Y., Pa. 
EAST NORTH CENTRAL -IIL, Ind., Mich., Ohio, Wis. 
WEST NORTH CENTRAL -Iowa, Kam., Minn., Mo., Nebr. 



States Comprising Geographic Divisions: 

EAST SOUTH CENTRAL -Ala., Ka., Miss., Tenn. 
WEST SOUTH CENTRAL -Ark., La., Okla., Tex. 
MOUNTAIN— Ariz.. Colo., Idaho. Mont., Nev., N. Mex., Utah, Wuo. 
N. Dak., S. Dak. PACIFIC— Calil., Oreg.. Wash. 



SOUTH ATLANTIC-Del, D. C, Flo., Co., Md., N. C, S. C, Va., W. Va. 



i 



CENSUS SURVEY OF BUSINESS: 1937-38 



Page 9 

WHOLESALE DISTRIBUTION 



HARDWARE 

TABLE 3. -SIZE OF SAMPLE 

1937 SURVEY COMPARED WITH 1935 CENSUS 

ESTABLISHMENTS, SALES AND PAY ROLL BY GEOGRAPHIC DIVISIONS 



KIND OF BUSINESS 

And 

DIVISION 



Number Of 
Establishments 



1935 
Census 



Included in 
1937-38 
Survey 



Number 



Sample 



Net Sales 
(add ooo) 



1935 
Census 



1935 Sales Of 
Those Included 
In 1937-38 Survey 



Amount 



Sample 



Pay Roll* 

(•dd 000 | 



1935 

Census 



1935 Pay Roll Of 
Those Included 
In 1937-38 Survey 



Amount 



Sample 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



UNITED STATES 

Hardware (full-line) 
Hardware (specialty lines) 

Hardware (full -line) 
New England 
Middle Atlantic 
East North Central 
West North Central 
South Atlantic 
East South Central 
West South Central 
Mountain 
Pacific 

Hardware (specialty lines) 
Middle Atlantic 
East North Central 
West North Central 
Pacific 
Other divisions 



1,129 



610 
519 



37 
154 
90 
44 
105 
51 
55 
25 
49 



314 

110 

36 

63 

96 



271 



175 
96 



11 
51 
27 
15 
19 

9 
16 

8 
19 



43 

19 

7 

12 
15 



24 



30 
33 
30 
34 
18 
18 
29 
32 
39 



$428,249 



387,020 
41,229 



14,194 
55,067 
79,366 
65,458 
42,024 
32,942 
34,815 
17,167 
45,987 



18,123 
7,675 
3,374 
3,625 
8,432 



$162,374 



151,136 
11,238 



6,673 
23,559 
41,017 
29,839 

7,556 

5,566 
12,158 

8,087 
16,681 



5,954 
2,009 
1,148 
823 
1,304 



38 



39 
27 



47 
43 
52 
46 
18 
17 
35 
47 
36 



33 
26 
34 
23 

15 



$46,178 



41,214 
4,964 



1,708 
6,624 
8,524 
7,344 
4,399 
3,181 
3,262 
1,495 
4,677 



2,202 
843 
489 
453 
977 



$18,157 



16,623 
1,534 



824 
2,856 
4,765 
3,248 

790 

523 
1,201 

731 
1,585 



829 
267 
177 
92 
169 



39 



40 
31 



48 
43 
56 
44 
18 
16 
37 
49 
36 



Pay roll includes compensation of full-time and part-time employees, but not of proprietors and firm members of unincorporated businesses. 

Slate, Comprising Geographic Divisions: 

NEW ENGLAND -Conn.. Maine. Mass., N. H.. R. /.. Vl. 

MIDDLE ATLANTIC -N. ;., N. Y., Pa. 

EAST NORTH CENTRAL-HL, Ind., Mich., Ohio, Wis. 

WEST NORTH CENTRAL -Iowa, Kans., Minn., Mo., Nebr., N. Dak., S. Dak. 

SOUTH ATLANTIC-DeL, D. C, Fla . Co., Md.. N. C, S. C, Va., W. Va. 



EAST SOUTH CENTRAL-Ala.. K».. Miss.. Tenn. 

WEST SOUTH CENTRAL-Ark, La., Ohla., Tex. 

MOUNTAIN— Ariz.. Colo.. Idaho. Mont.. Nev.. N. Mex.. Utah. Wyo. 

PACIFIC— Calii.. Oreg.. Wash 



UNITED STATES DEPARTMENT OF COMMERCE 

Daniel C. Roper, Secretary 

BUREAU OF THE CENSUS 

William L. Austin. Director 



CENSUS SURVEY OF BUSINESS: 1937-38 



WHOLESALE DISTRIBUTION 



MEATS AND PROVISIONS 



BUREAU OF THE 
LIBRARY 



H» 




DECEMBER, 1938 






< 



, 



CENSUS SURVEY OF BUSINESS: 1937-38 
Wholesale Distribution 



MEATS AND PROVISIONS 

This is one of a series of final reports presenting the findings of the Census Survey of 
Business for the year 1937 and the first half of 1938. Contained herein are dollar sales of 1,318 
identical establishments — 452 service and limited-function wholesalers and 866 manufacturers' sales 
branches — for the years 1935, 1936, 1937 and the first half of 1938; pay roll for the years 1935 and 
1937, ana the value of stocks on hand *>.t the end of the years 1935, 1936 and 1937. Sales for the year 
1937 and the first half of 1938 are shown by quarters. As added features, changes in size of business, 
1935 to 1937, are shown; establishments are classified according to their usual terms of sale; and sales 
for the year 1937 are analyzed to show cash and credit business separately. 

This Survey, unlike regular Censuses of Business, is not intended to present a complete pic- 
ture of the meat and provision trade, but rather to provide a reliable indicator of trends since the 
last Census. It was conducted by mail from lists made up only of establishments included in the 1935 
Census, all new ones since 1935 being omitted. Those with sales of less than $25,000 for the year 
1935 were omitted as they account for but a negligible portion of the total business. Reporting was 
purely on a voluntary basis with only one reminder follow up; hence, not all wholesalers contacted 
submitted returns. This report, in order to provide reliable trend information, is further limited to 
those establishments engaged primarily in selling meats and provisions at wholesale during the year 
1935 and which still operate in a similar manner. 

Three Regular Censuses 



' 



Three Regular Censuses of Business have been taken covering the years 1929, 1933 and 1935, 
respectively. Below is a comparison of the number and sales of service and limited-function wholesalers 
and manufacturers' sales branches engaged primarily in selling meats and provisions. 



Service and Limited- 
Function '.tfholesalers 



Manufacturers' Sales 
Branches 



Number of 
establishments 



Net sales 



Number of 
establishments 



Net sales 



1929 Census 
1933 Census 
1935 Census 

Percent change 
1929 to 1933 
1933 to 1935 



2,225 
2,281 
2,218 



+2.5 
-2.8 



$689,977,000 
364,139,000 
441,852,000 



-47.2 
+21.3 



not available 
845 
937 



+10.9 



not available 

fc 618,271,000 

1,080,929,000 



+74.8 



Identical establishments in this Survey: 

1935 452 $148,799,000 

1936 452 163,249,000 

1937 452 185,280,000 

Percent change, identical establishments 

1935 to 1937 +24.5 

550 Million Dollars For Service And Limited-Function Wholesalers 



866 
866 
866 



t 998,041,000 
1,093,004,000 
1,146,882,000 



+14.9 



If the 24.5 percent increase in 1937 over 1935, as found in this Survey, is considered repre- 
sentative for the trade, the total business of all service and limited -function wholesalers engaged 
primarily in selling meats and provisions exceeded $550,000,000 in 1937. Likewise, if the 14.9 percent 
increase is representative, the total for manufacturers' sales branches approximated $1,250,000,000. 



Page 2 



Pay Roll Increases 

It is interesting to note that pay roll (including salaries of executives and officers) was 
up more than sales between 1935 and 1937. Pay roll of title-taking wholesalers increased 26.5 percent 
as compared with 24.5 percent for sales; or, stated differently, it increased from #6.00 for each one 
hundred dollars of sales in 1935 to $6.10 in 1937. for manufacturers' sales branches it increased 
28.4 percent against a rise of 14.9 percent in sales, or from $3.10 per hundred dollars of sales in 
1935 to $3.50 per hundred in 1937. 

Percentage increases, J 937 over 1935, in sales, pay roll and stocks are given below: 



Type of Operation 



Percent increase, 1937 over 1935 

Stocks 
Sales Pay rol] (end of year) 



452 Service and limited-function wholesalers 24.5 26.5 
866 Manufacturers* sales branches 14.9 28.4 



23.2 
10.5 



Quarterly Sales, 1937 and First Half of 1938 

A measure of the short-term trend in the meat and provision trade is given in terms of quar- 
terly sales of the 452 service and limited-function wholesalers and the 866 manufacturers' sales bran- 
ches for the year 1937 and the first half of 1938. Quarterly sales by geographic divisions are shown 
in Table 1. The summary for the United States follows: 





452 Service and Limited- 
Function Wholesalers 


866 Manufacturers' 
Sales Branches 


Period 


Net Sales 

$42,918,000 
46,742,000 
48,907,000 
46,713,000 


# change from 

preceding 

quarter 


Net Sales 

$267,981,000 
283,320,000 
298,862,000 
296,719,000 


% change from 

preceding 

quarter 


1st Qr. 1937 
2nd Qr. 1937 
3rd Qr. 1937 
4th Qr. 1937 


+ 8.9 
+ 4.6 
- 4.5 


+ 5.7 
+ 5.5 
- 0.7 


1st Qr. 1938 
2nd Qr. 1938 


39,185,000 
42,433,000 


-16.1 
+ 8.3 


246,838,000 
255,282,000 


-16.8 
+ 3.4 


92 Percent Sample for Manufacturers' Sales Branches 







The 866 manufacturers' sales branches included herein represented '92 percent of the number 
and a similar percentage of the sales of all branches in 1935. Likewise, the 452 service and limited- 
function wholesalers constitute a sample of 20 percent in number and 34 percent in salesL 

Table 3, attached, measures the size of the Sample included in this Survey in terms of the 
1935 Census. In this table the number of those included, together with their 1935 sales and pay roll, 
is compared by geographic divisions with 1935 totals. For convenience in using the information the 
percent sample of establishments and sales is reproduced in Tables 1 and 2. 

Table 2 presents comparable information by geographic divisions as to sales and stocks of 
the 452 service and limited -function wholesalers and the 866 manufacturers' sales branches for .the 
years 1935, 1936 and 1937, and on pay roll for the years 1935 and 1937. 



Page 3 

SIZE OF ESTABLISHMENT 

Of the 452 service and limited-function wholesalers included in this Survey, 433 are classified 
as wholesale merchants, 4 as importers and 15 as wagon distributors. The 433 wholesale merchants are ar- 
ranged according to their 1935 size in Table A, below, where their number and sales are compared by size 
classification with all wholesale merchants specializing in meats and provisions during that year. As 
might be expected, a greater percentage of larger establishments are included than smaller ones. For ex- 
ample, 26 of the 68 houses (38$) in the $1, 000, 000-and -over bracket and 59 of the 147 (40$) in the 
$500,000-$999,999 group are included as compared with only 123 of the 1100 establishments (11$) under- 
$100,000 and 106 of 365 (29$) from $100,000-to-$200,000. In general, the sample is largest in the upper 
brackets and decreases with size. 

TABLE A. -SAMPLE BY SIZE OF ESTABLISHMENT-WHOLESALE MERCHANTS ONLY 





Numb 


er of 










Size of establishment 


establishments 


Net sales-1935 


Percent sample 


(Net sales in 1935) 


1935 


1937-38 


1935 


1937-38 


Estab- 


Net 




Census 


Survey 


Census 


Survey 


lishments 


sales 


Total 


2,059 


433 


$430,308,000 


$144,484,000 


21 


34 


$1,000,000 and over 


68 


26 


114,085,000 


42,058,000 


38 


37 


$500,000 - $999,999 


147 


59 


102,179,000 


41,974,000 


40 


41 


$300,000 - $499,999 


183 


60 


70,665,000 


23,152,000 


33 


33 


$200,000 - $299,999 


196 


59 


47,654,000 


14,388,000 


30 


30 


$100,000 - $199,999 


365 


106 


51,991,000 


15,332,000 


29 


29 


Under $100,000 


1,100 


123 


43,734,000 


7,580,000 


11 


17 



Increases by Size, 1937 over 1935 



Percentage increases in sales, pay roll and stocks — 1937 over 1935 — of the 433 wholesale 
merchants are shown in Table B, below, by size of establishment. While all size classifications show 
substantial increases in business, the largest gains are found in the lower brackets; 47.3 percent in- 
crease for the under $100,000 group and 27.4 percent for the $100,000 - $199,999 group as compared with 
an average of 24.7 percent for all size classifications. Pay roll of the very large establishments in- 
creased relatively more than sales, 27.8 percent for pay roll as compared with 18.1 percent in sales in 
the 0500,000 - $999,999 bracket and 31.3 percent for pay roll and 26.8 percent in sales in the $1,000,000- 
and-over group. For the smaller establishments the reverse holds true, sales increased more than pay roll. 

TABLE B. -INCREASES IN SALES, PAY ROLL AND STOCKS, 1937 OVER 1935, 
BY SIZE OF ESTABLISHMENT 





Number of 


Percent 


increase, 1937 over 1935 


Size of establishment 






Stocks 


(Net sales in 1935) 


establishments 


Sales 


Pay roll 


(end of year) 


Total 


433 


24.7 


26.2 


22.8 


$1,000,000 and over 


26 


26.8 


31.3 


7.8 


$500,000 - $999,999 


59 


18.1 


27.8 


28.2 


$300,000 - $499,999 


60 


25.3 


23.6 


25.9 


$200,000 - $299,999 


59 


21.4 


17.4 


51.8 


$100,000 - $199,999 


106 


27.4 


17.7 


32.7 


Under $100,000 


123 


47.3 


37.8 


82.5 



Changes of establishments from one size bracket to another, 1935 to 1937, are shown in Table C. 
In keeping with the general increase in sales, the trend was from the lower to the upper groups. For ex- 
ample, 38 of the 433 houses were in the $1,000, 000-and -over group in 1937 as compared with only 26 in 
1935, and 75 are now found in the $500,000 - $999,999 bracket as compared with only 59 in 1935. On the 
other hand, 123 had sales less than $100,000 in 1935 as compared with only 94 in 1937. A total of 135 
moved up in classification while only 21 dropped to lower groups. 

TABLE C. --NUMBER OF ESTABLISHMENTS BY SIZE CLASSIFICATION; 1935 AND 1937 

(Wholesale merchants only) 





Estab- 


*1, 000, 000 


$500,000- 


$300,000- 


$200,000- 


$100,000- 


Under 


Size of establishment 


lishments, 


and over 


$999,999 


$499,999 


$299,999 


$199,999 


$100,000 


(based on net sales) 


1935 


in 1937 


in 1937 


in 1937 


in 1937 


in 1937 


in 1937 


Total establishments, 1937 


433 


38 


75 


55 


73 


98 


94 


$1,000,000 and over in 1935 


26 


24 


2 










$500,000 - $999,999 in 1935 


59 


14 


44 


1 








$300,000 - $499,999 in 1935 


60 




25 


32 


3 






$200,000 - $299,999 in 1935 


59 




4 


16 


32 


7 




$100,000 - $199,999 in 1935 


106 






6 


33 


59 


8 


Under $100,000 


123 








5 


32 


86 



Page 4 



TERMS OF SALE 

The Bureau of the Census collected information in this Survey for the first time on the us- 
ual terms of sale. Each cooperating establishment was asked to report its usual credit period and its 
customary cash discount rate, if any. In addition, sales for the year 1937 were to be analyzed to 
show "spot cash" business; credit of 10 days or less; and credit sales of more than 10 days. Houses 
granting discounts for early payment of time sales were asked to report the percentage of their credit 
sales discounted in 1937. The results of these inquiries are presented in Tables D and E. Not all 
houses were able to supply the information, hence, the number of establishments in these tables is 
less than the total number included in the Survey. 

Credit Period And Rate Of Discount 



Table D classifies 414 service wholesalers and 858 manufacturers' sales branches according 
to usual credit periods and cash discount rates. It should be noted that these are the usual terms 
for the houses, and that either or both the credit period and the rate of discount may vary with the 
commodity sold and with the customer. Also, the classification as given here represents the policy 
of the house from which practice may vary. 

Selling on short term credit is the common practice in the trade. Only 26 of the merchant 
wholesalers and none of the manufacturers' branches sell on a "spot cash" basis, while 180 of the 
former and 742 of the latter extend credit for a period of 7 days or "until next call". Extension 
of 10 days, 15 days, 30 days and even 60 days are frequent for merchant wholesalers but are seldom 
found among sales branches. One hundred and three branches and 78 merchant wholesalers report that 
they vary the credit period according to the customer or to the line of goods sold. Only 55 of the 
414 merchant wholesalers and 352 of the 858 sales branches grant cash discounts as a matter of policy. 
The manufacturers' sales branches failed to state their rate of discount but 20 of the 35 merchant 
wholesalers allow 2 percent for early payment of bills — usually within 10 days. 



TABLE D.--ESTABLISHMENTS CLASSIFIED ACCORDING TO USUAL TERMS OF SALE 



Period 



Total 
Number of 

estab- 
lishments 



Usual discount rate 




Discount 

granted, 

rate not 

stated 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



Total establishments 


414 


359 


1/ 20 


35 


Spot cash 










(credit not usually granted) 


26 


26 


— 


— 


7 days 


180 


173 


— 


7 


10 days 


23 


21 


— 


2 


15 days 


13 


12 


— 


1 


30 days 


51 


28 


13 


10 


60 days 


9 


1 


6 


2 


Combination of periods** 


78 


69 


— 


9 


Period not stated 


34 


29 


1 


4 



MANUFACTURERS' SALES BRANCHES 



Total establishments 


858 


506 


__ 


352 


7 days 


742 


442 


— 


300 


15 days 


2 


2 


— 


— 


30 days 


5 


4 


— 


1 


Combination of periods** 


103 


57 


— 


46 


Period not stated 


6 


1 


— 


5 



* Discount not usually granted. 
** Period varies with commodity or customer. 

1/ 12 establishments reported their discount period as 10 days; 5 as 30 days. 
to report their discount period. 



Three failed 



Page 5 



" 



Cash vs. Credit Sales 

Collection is made on three fifths (58.5$) of the sales of service and limited -function 
wholesalers and three-fourths (74.4$) of the business of manufacturers' branches in ten days or less. 
Merchant wholesalers show a larger percentage of spot cash business than manufacturers sales branches 
(15.2$ as compared with 8.7%) but they also report a larger percentage on credit of more than 10 days 
(41.5$ as compared with 25.6$). The need for cash discounts on the part of those granting 2 percent 
is shown by the fact that 84.0 percent of their business is on credit of 10 days or more as compared 
with only 41.5 percent for all merchant wholesalers. 



TABLE E. -CASH-CREDIT ANALYSIS OF SALES 



» 



(Safes 


expressed in 


housandi 


> of dollars) 








Total 


Usual discount rate 


Usual Credit Period 


Net 


2$ 


Discount 

granted, 

rate not 

stated 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



Number of establishments 


414 


359 


20 


35 


Net sales (1937) 


$175,565 


$145,122 


$7,668 


$22,775 


Spot cash 


26,633 


24,460 


515 


1,658 


Credit 10 days or less 


76,044 


69,244 


713 


6,087 


Credit more than 10 days 


72,888 


51,418 


6,440 


15,030 


Percent of net sales 










Spot cash 


15.2 


16.9 


6.7 


7.3 


Credit 10 days or less 


43.3 


47.7 


9.3 


26.7 


Credit more than 10 days 


41.5 


35.4 


84.0 


66.0 






Percent of credit sales d 


iscounted 


Percent of all credit sales 










discounted (weighted average ) 






16.5 


13.1 



MANUFACTURERS' SALES BRANCHES 



Number of establishments 


858 


506 




352 


Net sales (1937) 


$1,142,863 


$586,343 




§556,520 


Spot cash 


99,851 


51,790 




48,061 


Credit 10 days or less 


750,740 


388,744 




361,996 


Credit more than 10 days 


292,272 


145,809 




146,463 


Percent of net sales 










Spot cash 


8.7 


8.8 




8.6 


Credit 10 days or less 


65.7 


66.3 




65.1 


Credit more than 10 days 


25.6 


24.9 




26.3 



Credit Sales Discounted 

The extent to which customers take advantage of cash discounts where allowed is also shown 
in Table E. Merchant wholesalers selling on a 2 percent basis granted discounts on 16.5 percent of 
their 1937 credit sales, and those which did not state -their rate discounted 13.1 percent of their 
business. 



- - 

The current Census Survey of Business includes retail as well as wholesale trade and is 
nation-wide in scope. It is being conducted by the Bureau of the Census with funds provided by the 
Works Progress Administration. The project is under the direction of Fred A. Gosnell, Chief Statis- 
tician, who was also in charge of previous Business Censuses. Wholesale trade reports are prepared 
under the immediate supervision of John Albright, assisted by James D. Lenig. 



Page 6 


























CENSUS SURVEY OF BUSINESS: 1937-38 


WHOLESALE DISTRIBUTION 


MEATS AND PROVISIONS 






TABLE l.-NET SALES BY QUARTERS: 1937 AND FIRST HALF OF 1938 






FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 






DIVISION 


Sample 

Based on 

1935 

Census 


No. OF 
Estab 

LISH- 
MENTS 

Report 

■INC 


Net 
Sales 
Year 
1937 


Net Sales By Quarters 
(•dd ooo) 


Percent 
Change 


1937 


1938 


1st Qr. 
1937 
To 


2NDQR 

1937 

To 


Estab- 
ush- 


*• 

Net 


1ST Qr. 


2nd Qr. 


3rd Qr. 


4th Qr. 


1st Qr. 


2nd Qr. 




MENTS 


Sales 


1937-38 




Jan. 1 


April 1 


July 1 


Oct. 1 


Jan. 1 


April 1 


1st Qr. 


2NDQR. 




% 


% 


Survey 


(add 000) 


Mar. 31 


June 30 


Sept 30 


Dec. 31 


Mar. 31 


June 30 


1938 


1938 


SERVICE AND LIMITED-FUNCTION WHOLESALERS 


UNITED STATES 


20 


34 


452 


$185,280 


$42,918 


$46,742 


$48,907 


»45,713 


$39,185 


$42,433 


- 8„7 


- 9.2 


New England 


21 


31 


58 


25,876 


5,665 


6,625 


7,302 


6,284 


5,365 


5,847 


- 5.3 


-11.7 


Middle Atlantic 


2? 


36 


159 


71,379 


16,994 


18,277 


18,705 


17,403 


15,492 


16,316 


- 8.8 


-10.7 


East North Central 


18 


35 


104 


46,167 


10,637 


11,503 


11,809 


12,218 


8,847 


10,586 


-16.8 


- 8.0 


West North Central 


15 


34 


18 


5,899 


1,320 


1,462 


1,612 


1,505 


1,286 


1,413 


- 2.6 


- 3.4 


South Atlantic 


15 


29 


27 


11,530 


2,849 


2,841 


2,952 


2,888 


2,722 


2,551 


- 4.5 


-10.2 


East South Central 


10 


18 


5 


1,562 


307 


397 


433 


425 


289 


343 


- 5.9 


-13.6 


West South Central 


14 


33 


14 


4,824 


1,035 


1,143 


1,313 


1,333 


1,094 


1,100 


+ 5.7 


- 3.8 


Mountain 


19 


28 


9 


1,578 


334 


391 


442 


411 


346 


407 


+ 3.6 


+ 4.1 


Pacific 


21 


34 


58 


16,465 


3,777 


4,103 


4,339 


4,246 


3,744 


3,870 


- 0.9 


- 5.7 


MANUFACTURERS' SALES BRANCHES (with stocks) 


UNITED STATES 


92 


92 


866 


1,146,882 


267,981 


283,320 


298,862 


296,719 


246,838 


255,282 


- 7.9 


- 9.9 


New England 


a 


a 


138 


151,170 


35,122 


37,170 


40,088 


38,790 


32,886 


33,666 


- 6.4 


- 9.4 


Middle Atlantic 


a 


a 


223 


364,688 


85,011 


89,570 


94,629 


95,478 


79,231 


81,722 


- 6.8 


- 8.8 


East North Central 


a 


a 


132 


199,227 


46,875 


49,590 


50,994 


51,768 


42,679 


44,684 


- 9.0 


- 9.9 


West North Central 


a 


a 


41 


63,006 


14,443 


15,929 


16,635 


15,999 


13,007 


14,409 


- 9.9 


- 9.5 


South Atlantic 


a 


a 


147 


162,607 


38,343 


39,926 


42,541 


41,797 


35,431 


35,701 


- 7.6 


-10.6 


East South Central 


a 


a 


47 


54,744 


12,225 


13,319 


14,613 


14,587 


10,986 


11,415 


-10.1 


-14.3 


West South Central 


a 


a 


74 


77,035 


17,907 


19,222 


19,907 


19,999 


16,746 


17,396 


- 6.5 


- 9.5 


Mountalc 


a 


a 


22 


13,097 


3,209 


3,266 


3,482 


3,140 


2,647 


2,689 


-17.5 


-17.7 


Pacific 


a 


a 


42 


61,308 


14,846 


15,328 


15,973 


15,161 


13,225 


13,600 


-10.9 


-11.3 


+ Increase - Decrease 






* Percentages in this column represent 1935 sales ot establishments included in this survey, divided by total 1935 sales of each classification. 


a Figures not available for year 1935. 






States Comprising Geographic Divisions: 






NEW ENCLAND-Conn., Main., Mass., N. H., R. /., Vt. EAST SOUTH CENTRAL-Ala., Ky 


, Miss., Tenn. 




MIDDLE ATLANTIC-N. J., N. Y., Pa. WEST SOUTH CENTRAL-Ark., U 


., Okla., Tex. 




EAST NORTH CENTRAL-IIL, Ind., Mich., Ohio, Wis. MOUNTAIN— Ariz.. Colo.. Idaho. Mont.. Nev.. N. Met., Utah 


, Who. 


WEST NORTH CENTRAL -Iowa, Kans., Minn., Mo., Near., N. Dak., S. Dak. PACIFIC— Calil., Oreg.. Wash. 






SOUTH ATLANTIC-.Del., D. C, Fla., Co., Md., N. C, S. C, Va., W. Va. 







Page 7 



» 



» 



CENSUS SURVEY OF BUSINESS: 1937-38 




WHOLESALE 


DISTRIBUTION 






MEATS AND PROVISIONS 








TABLE 2.-- SALES, PAY ROLL AND STOCKS: 1937, 1936 AND 1935 








FOR 


IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 








Size Of 


















Sample 

Compared 
With 1935 


No. Of 
Estab- 
lish- 


Net Sales 


Pay Roll** 


Stocks On Hand 
End Of Year 


Percent Increase 
1935 w 1937 


DIVISION 


Census 


ments 
Includ- 
ed In 
1937-38 
Survey 


Udd 000) 


Udd 000) 




(add 000 ) 








ESTAB. 

LISH- 

MENTS 

% 


Net- 
Sales 

% 


1937 


1936 


1935 


1937 


1935 


1937 


1936 


1935 


Net 
Sales 


Pay 

Roll 


Stocks 


SERVICE AND LIMITED-FUNCTION WHOLESALERS 


UNITED STATES 
Now England 


20 


34 


452 


J185.280 


1163,249 


*148,799 


111,220 


18,872 


$4,264 


*4,496 


13,462 


24.5 


26.5 


23.2 


21 


31 


58 


25,876 


23,348 


21,433 


1,564 


1,251 


682 


803 


670 


20.7 


25.0 


1.8 


Middle Atlantic 


27 


36 


159 


71,379 


63,260 


58,304 


3,801 


3,064 


1,299 


1,288 


1,147 


22.4 


24.1 


13.3 


East North Central 


18 


35 


104 


46,167 


38,391 


35,714 


2,921 


2,305 


1,159 


1,138 


873 


29.3 


26.7 


32.8 


West North Central 


15 


34 


18 


5,899 


5,314 


4,920 


498 


368 


119 


133 


63 


19.9 


35.3 


88.9 


South Atlantic 


15 


29 


27 


11,530 


10,952 


9,833 


695 


586 


285 


433 


259 


17.3 


18.6 


10.0 


Bast South Central 


10 


16 


5 


1,562 


1,267 


1,025 


63 


58 


31 


39 


37 


52.4 


8.6 


-16.2 


West South Central 


14 


33 


14 


4,824 


4,436 


3,562 


356 


239 


115 


147 


101 


35.4 


49.0 


13.9 


Mountain 


19 


26 


9 


1,578 


1,412 


1,318 


158 


110 


61 


67 


37 


19.7 


43.6 


64.9 


Pacific 


21 


34 


58 


16,465 


14,869 


12,690 


1,164 


891 


513 


448 


275 


29.7 


30.6 


86.5 


MANUFACTURERS' SALES BRANCHES (with stocks) 


UNITED STATES 
New England l 


92 


92 


866 


1,146,882 


1,093,004 


998,041 


39,594 


30,825 


30,578 


32,032 


27,673 


14.9 


28.4 


10.5 


a 


a 


138 


151,170 


144,622 


135,223 


4,568 


3,979 


3,772 


3,849 


3,400 


11.8 


14.8 


10.9 


Middle Atlantic 


a 


a 


223 


364,688 


351,893 


337,986 


11,335 


9,055 


9,087 


8,701 


7,761 


7.9 


25.2 


17.1 


Bast North Central 


a 


a 


132 


199,227 


191,051 


165,534 


6,882 


5,483 


3,782 


4,026 


3,348 


20.4 


25.5 


13.0 


West North Central 


a 


a 


41 


63,006 


59,141 


50,753 


2,221 


1,689 


1,156 


1,353 


1,174 


24.1 


31.5 


- 1.5 


South Atlantic 


a 


a 


147 


162,607 


153,189 


140,413 


5,877 


4,309 


5,764 


6,309 


5,293 


15.8 


36.4 


8.9 


East South Central 


a 


a 


47 


54,744 


51,636 


45,008 


1,972 


1,491 


1,944 


2,207 


1,780 


21.6 


32.3 


9.2 


'West South Central 


a 


a 


74 


77,035 


73,147 


64,284 


3,204 


2,432 


2,582 


3,048 


2,686 


19.8 


31.7 


- 3.9 


Mountain 


a 


a 


22 


13,097 


12,485 


10,506 


549 


357 


518 


650 


418 


24.7 


53.8 


23.9 


Pacific 


a 


a 


42 


61,308 


55,830 


48,334 


2,986 


2,030 


1,973 


1,889 


1,813 


26.8 


47.1 


8.8 


- Decrease 










* Percentages in this column 


represent 193E 


sales of establishments included in this survey, divided by total 1935 sal 


is of each classification. 




* * Pay roll not available for ] 


rear 1936. Pa 


y roll includes compensation of both full-time and part-time employees, but 


not of proprietors and firm 


members of 


unincorporated businesses. 










a Figures not available (or y 


;ar 1935. 


States Comprising Geographic Divisions: 






NEW ENCLAND-Conn., Main 


t, Man., N. H., 


R. /., VJ. EAST SOUTH CENTRA! 


. — Ala., Ky.. Miss., Tertn. 




MIDDLE ATLANTIC-N. J., N 


y., Pa. 


WEST SOUTH CENTRA 


L-Ark., La., Ohio.. Tex 




EAST NORTH CENTRAL-/!!. 


lnd., Mich., Oh 


o, W(j. MOUNTAIN— Ariz , Colo. 


Idaho. Monl.. Ntv., N. Mex., Utah, Wyo. 


WEST NORTH CENTRAL .!oi 


oa, Kant.. Minn., 


Mo., Nebr., N. Dak., S. Dak. PACIFIC— Call!., Oreg.. Wash. 




SOUTH ATLANTIC-Del., D. 1 


:., Flo., 


Co., Md 


, N. C, S 


C, Va., W 


Vo. 





















Page 8 




















CENSUS SURVEY OF BUSINESS: 1937-38 


WHOLESALE DISTRIBUTION 


MEATS AND PROVISIONS 








TABLE 3.-SIZE OF SAMPLE 






■ 


1937 SURVEY COMPARED WITH 1935 CENSUS 








ESTABLISHMENTS, SALES AND PAY ROLL, BY GEOGRAPHIC DIVISIONS 








Number Of 


Net Sales 


Pay Roll* 






Establishments 


1 «dd 000 ) 




add 000) 






Included In 




1935 Sales Of 




1935 Pay Roll Of 


DIVISION 




1937-38 




Those Included 




Those Included 




1935 


Survey 


1935 


In 1937-38 Survey 


1935 


In 1937-38 Survey 




Census 




% 

Sample 


Census 




% 
Sample 


Census 




% 

Sample 






Number 




AMuUNT 




Amount 


SERVICE AND LIMITED-FUNCTION WHOLESALERS 


UNITED STATES 
New England 


((2,218 


452 


20 


I 441,852 


#148,799 


34 


^24,847 


§ 3,872 


36 


274 


58 


21 


68,940 


21,433 


31 


3,448 


1,251 


36 


Middle Atlantic 


600 


159 


27 


162,543 


58,304 


36 


8,039 


3,064 


38 


East North Central 


572 


104 


18 


103,293 


35,714 


35 


6,450 


2,305 


36 


West North Central 


117 


18 


15 


14,308 


4,920 


34 


1,123 


368 


35 


South Atlantic 


183 


27 


15 


34,416 


9,833 


29 


1,983 


536 


30 


East South Central 


49 


5 


10 


5,618 


1,025 


18 


262 


58 


22 


West South Central 


98 


14 


14 


10,845 


3,562 


33 


682 


239 


35 


Mountain 


48 


9 


19 


4,777 


1,318 


28 


350 


110 


31 


Pacific 


277 


58 


21 


37,112 


12,690 


34 


2,510 


891 


35 


MANUFACTURERS' SALES BRANCHES (with stocks) 


UNITED STATSS 


937 


866 


92 


1,080,929 


998,041 


92 


33,540 


30,825 


92 


New England 


1/ 


138 




1/ 


135,223 




y 


3,979 




Middle Atlantic 




223 






337,986 




— 


9,055 




East North Central 


— 


132 




— 


165,534 




— 


5,483 




West North Central 


— 


41 




— 


50,753 




— 


1,689 




South Atlantic 


— 


147 




— 


140,413 




— 


4,309 




East South Central 


— 


47 




— 


45,008 




— 


1,491 




West South Central 


— 


74 




— 


64,234 




— 


2,432 




Mountain 


— 


22 




— 


10,506 




— 


357 




Pacific 


— 


42 




— 


43,334 




— 


2,030 




* Pay roll includes compensation of full-time and part-time employees, but not ot proprietors and firm members of unincor 


Dorated businesses. 


1/ 1935 Census totals not available by geographic divisions. 








Stales Comprising Geographic Divisions: 








NEW ENCLAND-Conn., Maine, Mass., N. H.. R. /.. Vt. EAST SOUTH CENTRAL-Ala., Ky., 


rliss.. Tenn. 






MIDDLE ATLANT1C--N. J., N. Y., Pa. WEST SOUTH CENTRAL-Ark., La., 


Okla., Tex. 






EAST NORTH CENTRAL .111, Ind., Mich., Ohio, Wis. MOUNTAIN— Ariz., Colo., Idaho. Monl 


. Nee., N. Mez 


. Utah. Who. 




WEST NORTH CENTRAL-lowa, Kans., Minn., Mo.. Nebr., N. Dak., S. Dak. PACIFIC— Calif., Oreg.. Wash. 








SOUTH ATLANTIC-Del, D. C, Fla., Ca., Md., N. C, S. C, Va., W. Va. 









4 



, 



> 



UNITED STATES DEPARTMENT OF COMMERCE 

Harry L. Hopkins, Secretary 

BUREAU OF THE CENSUS 

William L. Austin. Director 



/yvv 



CENSUS SURVEY OF BUSINESS: 1937-38 



WHOLESALE DISTRIBUTION 



OIL WELL SUPPLY HOUSES 



Hi' 




JANUARY, 1939 



2&i?3 



?*> Ml 



-«• 



■ •.• 



CENSUS SURVEY OF BUSINESS: 
Wholesale Distribution 



1937-38 



OIL WELL SUPPLY HOUSES 

This is one of a series of final reports presenting the findings of the Census Survey 
of Business for the year 1937 and the first half of 1938. Contained herein are dollar sales of 
341 identical establishments — 228 service wholesalers and 103 manufacturers' sales branches — 
for the years 1935, 1936, 1937, and the first half of 1938; pay roll for the years 1935 and 1937; 
and the value of stocks on hand at the end of the years 1935, 1936 and 1937. Sales for the year 
1937 and the first half of 1938 are shown by quarters. As added features, changes in the size of 
business, 1935 to 1937, are shown; establishments are classified according to their usual terms 
of sale; and sales for the year 1937 are analyzed to show cash and credit business separately. 

This Survey, unlike regular Censuses of Business, is not intended to present a complete 
picture of the oil well supply trade, but rather to provide a reliable indicator of trends since 
the last Census. It was conducted by mail from lists made up only of establishments included in 
the 1935 Census, all new ones being omitted. Those with sales of less than $25,000 for the year 
1935 are likewise omitted, as they account for a negligible portion of the total business. Re- 
porting was purely on a voluntary basis with only one reminder follow up; hence, not all estab- 
lishments contacted submitted returns. This report, in order to provide reliable trend informa- 
tion, is further limited to those establishments engaged primarily in selling oil well supplies 
during the year 1935 and which continue to operate in a similar manner. 



SIZE OF SAMPLE 



A total of 228 service wholesalers and 103 manufacturers' sales branches are included 
in this Survey. The 228 service wholesalers represented 30 percent of the number and accounted 
for 49 percent of the business of all service wholesalers engaged primarily in selling oil well 
supplies during 1935. Similarly, the 103 manufacturers' sales branches constitute a sample of 69 
percent in number and 68 percent in sales. A summary comparison follows: 





Service 


Wholesalers 


Manufacturers ' 
Sales Branches 


Tear 


Number of 

Estab- 
lishments 


Net Sales 


Number of 

Estab- 
lishments 


Net Sales 


1935 Census 
1937-38 Survey 


759 
228 


$152,273,000 
75,133,000 


150 
103 


$28,038,000 
18,933,000 



Percent Sample 



30 



49 



69 



68 



238 Million Dollars For Service Wholesalers In 1937 

Net sales of the 228 identical service wholesalers increased 22.2 percent from 1935 to 
19^6 and 28 percent from 1936 to 1937, or 56.8 percent between 1935 and 1937. Likewise, the 
business of the 103 manufacturers' sales branches increased 35.0 percent between 1935 and 1936 
and 9.0 percent from 1936 to 1937, or 47.6 percent from 1935 to 1937. If the 56.8 percent in- 
crease is considered representative for all service wholesalers, their total sales for the year 
^ST must have exceeded 238 million dollars. Similarly, the total for all manufacturers' sales 
branches approximated 41 million dollars. Sales of identical establishments for the years 1935, 
1936 and 1937 are given on the following page. 



Page 2 



SALES OF IDENTICAL ESTABLISHMENTS 



Service Wholesalers 



Year 



1935 
1936 
1937 



Number of 

Estab- 
lishments 

228 

228 
228 



Percent change, 1935 to 1937 



Net Sales 



$ 75,133,000 

91,845,000 

117,789,000 

56.8 



Manufacturers « 
Sales Branches 



Number 

of 
Branches 

103 
103 
103 



"Net Sales 



$18,933,000 
25,645,000 
27,941,000 

47.6 



« 



Increases 1937 Over 1935 

It is interesting to note that pay roll for the 103 manufacturers' sales branches increased 
relatively more than sales; 86.2 percent for pay roll as compared with 47.6 percent for sales. Inven- 
tories, however, were up only 15.0 percent. The 228 service wholesalers show an increase of 56.8 percent 
in sales as compared with 44.8 percent for pay roll and 46.6 percent for stocks. 

Percent increase, 1937 over 1935 



103 Manufacturers * sales branches 

228 Service and limited-function wholesalers 



Sales 

47.6 
56.8 



Pay roll 

86.2 
44.8 



Stocks 
(end of year) 

15.0 
46.6 






Quarterly Sales, 1937 and First Half of 1938 

A measure of the short-term trend in the oil well supply trade is given in terms of quarterly I 
sales for the year 1937 and the first half of 1938. Quarterly sales by geographic divisions are shown in 
Table 1. The summary for the United States follows: 





Service Wholesalers 


Manufacturers ' 
Sales Branches 


Period 


Net Sales 


$> change 

from 

preceding 

quarter 


Net Sales 


56 change 
from 
preceding 
quarter 


1st Qr. 1937 
2nd Qr. 1937 
3rd Qr. 1937 
4th Qr. 1937 

1st Qr. 1938 
2nd Qr. 1938 


$32,846,000 
31,021,000 
29,376,000 
24,546,000 

22,773,000 
20,487,000 


- 5.6 

- 5.3 

- 16.4 

- 7.2 

- 10.0 


$6,400,000 
7,784,000 
7,227,000 
6,530,000 

5,974,000 
5,082,000 


+ 21.6 

- 7.2 

- 9.6 

- 8.5 

- 14.9 



Percent change 



1st Qr. 1938 vs. 1st Qr. 1937 


- 30.7 




- 6.7 




2nd Qr. 1938 vs. 2nd Qr. 1937 


- 34.0 




- 34.7 




1st half 1938 vs. 1st half 1937 


- 32.3 




- 22.1 





Table 3, attached, measures the size of the sample included in this Survey in terms of the 1935 
Census. In this table the number included, together with their 1935 sales and pay roll, is compared by 
geographic divisions with the totals in 1935. For convenience in using the information the percent sam- 
ple, of establishments and sales, is reproduced in Tables 1 and 2. 

Table 2 presents comparable information by geographic divisions as to sales and stocks of the 
228 service wholesalers and 103 manufacturers' sales branches for the years 1935, 1936 and 1937, and on 
pay roll for the years 1935 and 1937. 



* 



Page 3 



SIZE OF ESTABLISHMENT 

Of the 228 service wholesalers Included, 224 are classified as wholesale merchants or in- 
dustrial distributors. These 224 merchants are arranged according to 1935 size in Table A, below, 
where their number and sales are compared by size classification with all wholesale merchants special- 
izing in oil well supplies for that year. As might be expected, the percent sample (percent of 1935 
total reporting for 1937) both of establishments and sales is largest in the $1, 000, 000-and -over group 
where 61 percent of the establishments accounting for 59 percent of sales are included, and decreases 
with size to 15 percent of establishments (and 20 percent of sales) in the under-$100 , 000 bracket. 



TABLE A. -SAMPLE BY SIZE OF ESTABLISHMENT-WHOLESALE MERCHANTS ONLY 



Size of establishment 


Number of 
establishments 


Net sales-1935 
(add 000) 


Percent sample 


(Net sales in 1935) 


1935 
Census 


1937-38 
Survey 


1935 
Census 


1937-38 
Survey 


Estab- 
lishments 


Net 
Sales 


Total 
$1,000,000 and over 
$500,000 - $999,999 
$300,000 - $499,999 
$200,000 - $299,999 
$100,000 - $199,999 
Under $100,000 


754 
23 
39 
62 
73 
162 
395 


224 
14 
23 
30 
31 
68 
58 


$147 , 559 
39,462 
27,150 
23,073 
17,364 
22,212 
18,298 


$70,726 

23,354 

16,007 

10,929 

7,346 

9,447 

3,643 


30 
61 
59 
48 
42 
42 
15 


48 
59 
59 
47 
42 
43 
20 



increases By Size, 1937 Over 1935 

Percentage increases in sales, pay roll and stocks — 1937 over 1935 — of the 224 wholesale 
merchants are shown in Table B, below, by size of establishment. It is interesting to note that 
smaller establishments show greater increases in sales than the larger ones. For example, sales of 
the 17 wholesale merchants under $100,000 gained 145.5 percent and those $100,000 - $199,999 show an 
increase of 81.8 percent as compared with only 19.8 percent for the $500,000 - $999,999 group and 51.5 
percent for the $l,000,000-and-over bracket. 



TABLE B. 



-INCREASES IN SALES, PAY ROLL AND STOCKS, 1937 OVER 1935, 
BY SIZE OF ESTABLISHMENT 





Number of 


Percent 


increase, 1937 over 1935 


Size of establishment 






Stocks 


(Net sales in 1935) 


establishments 


Sales 


Pay roll 


(end of year) 


Total 


224 


+ 54.4 


+ 45.3 


+ 46.3 


$1,000,000 and over 


14 


+ 51.5 


+ 56.9 


+ 46.7 


$500,000 - $999,999 


23 


* 19.8 


+ 36.4 


+ 60.1 


$300,000 - $499,999 


30 


+ 67.5 


+ 63.3 


+ 43.9 


$200,000 - $299,999 


31 


+ 38.9 


+ 38.5 


+ 43.4 


$100,000 - $199,999 


68 


+ 81.8 


+ 32.1 


+ 39.7 


Under $100,000 


58 


+145.5 


+ 41.0 


+ 43.2 



Changes in size bracket, 1935 to 1937, are shown in Table C. In keeping with the general 
increase in sales, the trend was from the lower to the upper groups. For example, 24 houses were in 
the $1,000, 000-and -over group in 1937 as compared with only 14 in 1935. On the other hand, only 41 
houses had sales of less than $100,000 in 1937 as compared with 58 in 1935. A total of 97 moved up 
in classification while only 25 dropped to lower groups. Thirty-five establishments increased more 
than one size bracket. 



» 



Page 4 



4 



TABLE C. -NUMBER OF ESTABLISHMENTS BY SIZE CLASSIFICATION; 

WHOLESALE MERCHANTS ONLY 


1935 AND 1937 


Size of establishment 
(based on net sales) 


Total 
(1935) 


(1) 


(2) 


(3) 


(-4) 


(5) 


(6) 


Total establishments, 1937 
$1,000,000 and over in 1935 
$500,000 - $999,999 in 1935 
$300,000 - $499,999 in 1935 
$200,000 - $299,999 in 1935 
$100,000 - $199,999 in 1935 
Under $100,000 


224 
14 
23 
30 
31 
68 
58 


24 
12 

8 
3 

1 


38 
2 
11 
12 
4 
3 
6 


40 

2 

13 
10 
14 

1 


29 

1 

1 

_8 

16 

3 


52 

1 

1 

8 

26 

16 


41 

1 

8 

32 



(1) $1,000,000 and over in 1937 

(2) $500,000 - $999,999 in 1937 

(3) $300,000 - $499,999 in 1937 



(4) $200,000 - $299,999 in 1937 

(5) $100,000 - $199,999 in 1937 

(6) Under $100,000 in 1937 



TERMS OF SALE 

The Bureau of the Census collected information in this Survey for the first time on the usual 
terms of sale. Each cooperating establishment was asked to report its usual credit period and its cus- 
tomary cash discount rate, if any. In addition, sales for the year 1937 were to be analyzed to show spot 
cash business; credit sales of 10 days or less; and credit of more than 10 days. Houses granting dis- 
counts for early payment of time sales were asked to report the percentage of their credit sales discount- 
ed in 1937. The results of these inquiries are presented in Tables D and E. As not all houses were able 
to supply the information, the number of establishments in these Tables is less than the total number in- 
cluded in the Survey. 

Credit Period And Rate Of Discount 



( 



Table D classifies 221 service wholesalers and 103 manufacturers' sales branches according to 
usual credit periods and cash discount rate. It should be noted that these are the usual terms for the 
houses, and that either or both the credit period and the rate of discount may vary with the commodity 
sold and with the customer. 

As shown in the table, 60 days is the customary credit period for service wholesalers and also 
for manufacturers' sales branches, although 35 of the former and 10 of the latter sell on a 30 day basis. 
A cash discount of 2 percent is usually granted. However, 11 service wholesalers and 5 manufacturers' 
sales branches state that they bill net. 



TABLE D.-ESTABLISHMENTS CLASSIFIED ACCORDING TO USUAL TERMS OF SALE 





Total 
number of 

estab- 
lishments 




Usual 


discount 


rate 


Usual Credit Period 


Net* 


2% 


Discount 

granted, 

rate not 

stated 


SERVICE WHOLESALERS 


Total establishments 

30 days 

60 days 

Periods not stated 


221 
35 

114 
72 


11 

6 

5 


1/ 


179 
26 
90 
63 


31 
2 

24 
5 


MANUFACTURERS' SALES BRANCHES 


Total establishments 
30 days 
60 days 


103 
10 
93 


5 
5 


2/ 


98 

5 

93 


~ 



* Cash discounts not usually granted. 

1/ 13 establishments reported their discount period as 10 days; 8 as 10th proximo; 

27 as 15th proximo; 118 as 20th proximo; and 13 as 30 days. 
2/ 5 establishments reported their discount period as 10th proximo and 93 as 20th 

proximo. 



« 



Page 5 



Cash vs. Credit Sales 

The cash credit division of 1937 sales is given in Table E. Practically all the oil well 
supply business (99.1 percent for service wholesalers and 98.9 percent for manufacturers • sales bran- 
ches) is on credit for a period of more than 10 days. 



TABLE E.- 


CASH-CREDIT ANALYSIS OF SALES 




(Sales expressed in thousands of dollars) 




Usual discount rate 










Discount 


Usual Credit Period 


Total 


Net 


2% 


granted, 

rate not 

stated 



SERVICE WHOLESALERS 



> 



Number of establishments 


221 


11 


179 


31 


Net sales (1937) 


$112,686 


$2,228 


$95,768 


$14,690 


Spot cash 


581 


295 


286 


— 


Credit 10 days or less 


436 


14 


320 


102 


Credit more than 10 days 


111,669 


1,919 


95,162 


14,588 


Percent of net sales 










Spot cash 


0.5 


13.2 


0.3 


0.0 


Credit 10 days or less 


0.4 


0.6 


0.3 


0.7 


Credit more than 10 days 


99.1 


86.2 


99.4 


99.3 




Percei 


it of credit sales discounted 


Percent of all credit sales 










discounted (weighted average) 






78.0 


44.7 



MANUFACTURERS' SALES BRANCHES 



Number of establishments 


103 


5 


98 




— 


Net sales (1937) 


$27,941 


$807 


$27,134 




__ 


Spot cash 


316 


— 


316 




— 


Credit 10 days or less 


— 


— 


— 




— 


Credit more than 10 days 


27,625 


807 


26,818 




— 


Percent of net sales 












Spot cash 


1.1 


— 


1.2 




__ 


Credit 10 days or less 


0.0 


— 


0.0 




— 


Credit more than 10 days 


98.9 


100.0 


98.8 




— 




Percer 


it of credit 


sales discounted 




Percent of all credit sales 












discounted (weighted average) 






72.8 







Credit Sales Discounted 

The extent to which customers take advantage of cash discounts where allowed is also shown 
in Table E. Service wholesalers and man ufacturers 1 sales branches on a 2 percent basis granted dis- 
counts on 78.0 percent and 72.8 percent respectively of their 1935 credit sales. 

- - 



' 



The current Census Survey of Business includes retail as well as wholesale trade and is 
nation-wide in scope. It is being conducted by the Bureau of the Census with funds provided by the 
"Works Progress Administration. The project is under the direction of Fred A. Gosnell, Chief Statis- 
tician, who was also in charge of previous Business Censuses. Wholesale trade reports are prepared 
under the immediate supervision of John Albright, assisted by James D. Lenig. 



Page 6 

CENSUS SURVEY OF BUSINESS: 1937-38 



WHOLESALE DISTRIBUTION 



OIL-WELL SUPPLY HOUSES 

TABLE l.-NET SALES BY QUARTERS: 1937 AND FIRST HALF OF 1938 

FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 



I 



DIVISION 



Size Of 

Sample 

Compared 

With 1935 

Census 



Estab- 
lish, 
ments 



Net. 
Sales 



No. Of 
Estab- 
lish- 
ments 

Includ- 
ed In 

1937-38 
Survey 



Net 
Sales 
Year 
1937 



(add OOO) 



Net Sales By Quarters 

(odd 000) 



1937 



1ST Qr. 

Jan. 1 
Mar. 31 



2ND QR. 

April 1 
June 30 



3RD Qr. 

July 1 
Sept. 30 



4TH QR. 

Oct 1 
Dec. 31 



1938 



1ST Qr. 

Jan. 1 
Mar. 31 



2nd Qr. 

April 1 
June 30 



Percent 
Chance 



1st Qr. 

1937 

To 
1st Qr 

1938 



2nd QR 
1937 
To 

2ND QR 
1938 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



UNITED STATES 

Middle Atlantic 

East North Central 

West North Central 

West South Central 

Mountain 

Pacific 

Other divisions 



49 



54 
37 
47 

52 
59 
39 
46 



228 



$117,789 



12 
8 

20 
138 

10 

36 
4 



9,555 
3,111 
8,326 

73,828 
3,888 

16,208 
2,873 



|32,846 



2,636 
754 

2,485 
20,265 

1,125 

4,679 
902 



$31,021 



2,438 
1,064 
2,081 
19,801 
1,097 
3,641 
899 



$29,376 



2,127 
731 

2,389 

18,779 

913 

3,784 
653 



$24,546 



2,354 
562 

1,371 

14 , 983 

753 

4,104 
419 



$22,773 



1,936 

496 

824 

14,266 

718 

4,324 
209 



$20,487 



1,733 

503 

695 

12,818 

673 

3,791 
274 



-30.7 



-26.6 
-34.2 
-66.8 
-£9.6 
-36.2 
- 7.6 
-76.8 



-34.0 



-28.9 
-52.7 
-66.6 
-35.3 
-38.7 
► 4.1 
-69.5 



MANUFACTURERS' SALES BRANCHES (with stocks) 



UNITED STATES 

Middle Atlantic 
East North Central 
West North Central 
South Atlantic 
East South Central 
West South Central 
Mountain 
Pacific 



59 



1/ 



68 



1/ 



6 

12 

10 

4 

3 

53 

7 



27,941 



1,939 
1,314 
2,728 

\ 661 

17,714 
1,514 
2,071 



6,400 



495 
378 
647 

136 

4,054 
363 
327 



7,784 



523 
315 
834 

176 

4,980 
422 
534 



7,227 



445 
344 
793 

192 

4,516 
414 
523 



6,530 



476 
277 
454 

157 

4,164 
315 
687 



5,974 



262 
193 
361 

77 

4,291 
240 
550 



5,082 



228 
256 
276 

139 

3,358 
262 
563 



- 6.7 



-47.1 
-48.9 
-44.2 

-43.4 

► 5.8 
-33.9 
►68.2 



-34.7 



-56.4 
-18.7 
-66.9 

-21.0 

-32.6 
-37.9 
+ 5.4 



+ Increase 



- Decrease 



* Percentages in this column represent 1935 sales of establishments included in this survey, divided by total 1935 sales of each classification. 



1/ 1935 figures not available for calculating percent sample by geographic divisions. 

States Comprising Geographic 
NEW ENGLAND -Conn., Maine, Mass., N. H., R. I., Vt. 
MIDDLE ATLANTIC-N. J., N. Y., Pa. 
EAST NORTH CENTRAL-IIL, Ind., Mich., Ohio, Wig. 

WEST NORTH CENTRAL -Iowa, Kan.., Minn., Mo., Nebr., N. Dak., S. Dak. 
SOUTH ATLANTIC-Del., D. C, Fla., Co., Md., N. C, S. C, Va., W. Va. 



Divisions: 

EAST SOUTH CENTRAL-Ala., Ky., Miss., Tenn. 
WEST SOUTH CENTRAL-Ark., La., Okla., Tex. 
MOUNTAIN— Ariz., Colo., Idaho, Mont., Net)., N. Mex., Utah, W V o 
PACIFIC— Call/., Oreg.. Wash. 



Page 7 



CENSUS SURVEY OF BUSINESS: 1937-38 




WHOLESALE DISTRIBUTION 


OIL-WELL SUPPLY HOUSES 






TABLE 2.- SALES, PAY ROLL AND STOCKS: 1937, 1936 AND 1935 




FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 






Size Of 

Sample 

Compared 

With 1935 


No. Of 
Estab- 


Net Sales 


Pay Roll"* 


Stocks On Hand 


Percent Increase 




lish- 






End Of Year 


1935 .o 1937 


DIVISION 


Census 


ments 
Includ- 
ed In 
1937-38 

Survey 


(add 000) 


(add 000 ) 




(.dd 000) 




ESTAB- 
LISH- 
MENTS 


Net* 
Sales 

% 


1937 


1936 


1935 


1937 


1935 


1937 


1936 


1935 


Net 
Sales 


Pay 

Roll 


Stocks 


SERVICE AND LIMITED-FUNCTION WHOLESALERS 


TOTTED STATES 
Middle Atlantic 


30 


49 


228 


♦117,789 


$91,845 


$75,133 


$5,019 


$3,467 


$14,492 


$11,745 


$9,886 


56.8 


44.8 


46.6 


27 


54 


12 


9,555 


7,881 


5,545 


802 


503 


1,000 


744 


689 


72.3 


59.4 


45.1 


East North Central 


19 


37 


e 


3,111 


1,745 


1,729 


133 


98 


215 


140 


105 


79.9 


35.7 


104.8 


West North Central 


35 


47 


20 


8,326 


6,467 


3 879 


182 


107 


1,377 


982 


782 


114.6 


70.1 


75.1 


West South Central 


32 


52 


138 


73,828 


58,310 


49,384 


2,450 


1,684 


9,121 


7,512 


6,626 


49.5 


45.5 


37.7 


Mountain 


50 


59 


10 


3,888 


4,574 


2,686 


94 


65 


702 


622 


528 


44.8 


44.6 


33.0 


Pacific 


26 


39 


36 


16,208 


10,888 


10,663 


1,111 


914 


1,950 


1,631 


1,042 


52.0 


21.6 


87.1 


Other divisions 


15 


46 


4 


2,873 


1,980 


1,247 


247 


96 


127 


114 


114 


130.4 


157.3 


11.4 


MANUFACTURERS' SALES BRANCHES (with stocks) 


UNITED STATES 
Middle Atlantic 


69 


68 


103 


27 , 941 


25,645 


18,933 


1,940 


1,042 


7,046 


7,144 


6,128 


47.6 


86.2 


15.0 


1/ 


1/ 


6 


1,939 


2,211 


1,072 


166 


101 


309 


272 


172 


80.9 


64.4 


79.7 


East North Central 


— 


— 


12 


1,314 


991 


948 


102 


53 


406 


344 


256 


38.6 


92.5 


58.6 


West North Central 


— 


— 


10 


2,728 


2,496 


1,150 


106 


48 


623 


706 


475 


137.2 


120.8 


31.2 


South Atlantic 
East South Central 


— 


:: 


4 

3 


} « 


793 


508 


55 


34 


229 


195 


142 


30.1 


61.8 


61.3 


West South Central 


— 


— 


53 


17,714 


16,482 


13,156 


1,194 


635 


4,522 


4,815 


4,285 


34.6 


88.0 


5.5 


Mountain 


— 


— 


7 


1,514 


1,467 


1,211 


68 


55 


517 


495 


515 


25.0 


23.6 


0.4 


Pacific 


-•- 


— 


8 


2,071 


1,205 


888 


249 


116 


440 


317 


283 


133.2 


114.7 


55.5 


* Percentages in this column represent 1935 sales of establishments included in this survey, divided by t 


)tal 1935 sales of each classification. 


* * Pay roll not available for year 1936. Pay roll includes compensation of both full-time and part-time employees, t 


ut not of proprietors and firm members of 


unincorporated businesses. 






\J 1935 figures not available for calculating percent sample by geographic divisions. 






States Comprising Geographic Divisions: 






NEW ENCLAND-Conn., Maine, Mats., N. H., R. I., Vt. EAST SOUTH 


CENTRAL- A la., Ky., Miss., Tenn. 


MIDDLE ATLANTIC-N. I., N. Y., Pa. WEST SOUTH 


CENTRAL-Ark.. La., Okla,, Tex. 


EAST NORTH CENTRAL-IIL, Ind., Mich., Ohio, Wit. MOUNTAIN— A 


ri»„ Colo.. Idaho. Mont.. Nev.. N. Met., Utah, Wuo. 


WEST NORTH CENTRAL -Iowa, Kant., Minn., Mo., Nebr., N. Dak., S. Dak PACIFIC— Calit. 


Oreg.. Wash. 


SOUTH ATLANTIC-DeL, t 


>. C, Fl 


a., Co., 


MA, N. C. 


S. C, Va., 


W. Va. 





















P-rfC""** 




















CENSUS SURVEY OF BUSINESS: 1937-38 


WHOLESALE DISTRIBUTION 


OIL-WELL SUPPLY HOUSES 






TABLE 3.-SIZE OF SAMPLE 






1937 SURVEY COMPARED WITH 1935 CENSUS 






ESTABLISHMENTS, SALES AND PAYROLL, BY GEOGRAPHIC DIVISIONS 






Number Of 


Net Sales 


Pay Roll* 




Establishments 


(odd 000 ) 




add 000) 




Included In 




1935 Sales Of 




1935 Pay Roll Of 


DIVISION 




1937-38 




Those Included 




Those Included 




1935 


Survey 


1935 


In 1937-38 Survey 


1935 


In 1937-38 Survey 




Census 




% 
Sample 


Census 




% 
Sample 


Census 




% 
Sample 






Number 




Amount 




Amount 


SERVICE AND LIMITED-FUNCTION WHOLESALERS 


UNITED STATES 
Middle Atlantic 


759 


228 


30 


$152,273 


$75,133 


49 


$8,163 


$3,467 


42 


44 


12 


27 


10,338 


5,545 


54 


730 


503 


69 


East North Central 


42 


8 


19 


4,612 


1,729 


37 


322 


98 


30 


West North Central 


57 


20 


35 


8,178 


3,879 


47 


339 


107 


32 


West South Central 


428 


138 


32 


94,423 


49,384 


52 


4,409 


1,684 


38 


Mountain 


20 


10 


50 


4,526 


2,686 


59 


112 


65 


58 


Pacific 


140 


36 


26 


27,330 


10,663 


39 


2,023 


914 


45 


Other divisions 1/ 


27 


4 


15 


2,691 


1,247 


46 


198 


96 


48 


MANUFACTURERS' SALES BRANCHES (with stocks) 


UNITED STATES 
Middle Atlantic 


150 


103 


69 


28 j 038 


18,933 


68 


1,392 


1,042 


75 


St 


2/ 


__ 


_ — 


1,072 


_ — 


__ 


101 


__ 


East North Central 




12 


~ 


— 


948 


— 


— 


53 


~ 


West North Central 


— 


10 


— 


— 


1,150 


— 


— 


48 


— 


South Atlantic 


— 


4 


}- 




508 






34 


_ 


East South Central 


— 


3 














West South Central 


— 


53 


— 


-- 


13,156 


— 


— 


635 


~ 


Mountain 


— 


7 


— 


— 


1,211 


— 


— 


55 


-- 


Pacific 


— 


8 


— 


— 


888 


~ 


— 


116 


— 


* Pay roll includes compensation of full time and part-time employees, but not of proprietors and firm members of unincorporated businesses. 


_l/ 1935 figures for geographic divisions not represented in this survey are omitted. 






2/ 1935 figures not available for calculating percent sample by geographic divisions. 






States Comprising Geographic Divisions: 






NEW ENGLAND -Conn., Maine, Mass., N. H., R. /., Vl. EAST SOUTH CENTRAL-Ala., Ky., 


Miss., Tenn. 




MIDDLE ATLANTIC-N. J., N. Y., Pa. WEST SOUTH CENTRAL-Ark., La., 


Okla., Tex. 




EAST NORTH CENTRAL-llL, Ind., Mich., Ohio, Wis. MOUNTAIN— Ariz., Colo., Idaho, Mont., Neo., N. Mex., Utah, Wyo. 


WEST NORTH CENTRAL-lowa, Kans., Minn., Mo., Nebr., N. Dak., S. Dak. PACIFIC— Calif., Oreg.. Wash. 






SOUTH ATLANTIC-Del, D. C, Fla., Co., Md., N. C, S. C, Va., W. Va. 





- 



9 



UNITED STATES DEPARTMENT OF COMMERCE 

Daniel C. Roper, Secretary 

BUREAU OF THE CENSUS 

William L. Austin. Director 



CENSUS SURVEY OF BUSINESS: 1937-38 



WHOLESALE DISTRIBUTION 



OPTICAL GOODS 



BUREAU 8F THE CENSUS 
LIBRARY 




DECEMBER, 1938 






I ■ I e\ I 



' 



CENSUS SURVEY OF BUSINESS: 
Wholesale Distribution 



1937-38 



OPTICAL GOODS 



This is one of a series of final reports presenting the findings of the Census Survey of 
Business for the year 1937 and the first half of 1938. Contained herein are dollar sales of 276 
identical establishments — 124 service wholesalers and 152 manufacturers' sales branches — for the 
years 1935, 1936, 1937 and the first half of 1938; pay roll for the years 1935 and 1937; and the 
value of stocks on hand at the end of the years 1935, 1936 and 1937. Sales for the year 1937 and 
the first half of 1938 are shown by quarters. As added features, changes in size of business, 1935 
to 1937, are shown; establishments are classified according to their usual terms of sale; and sales 
for the year 1937 are analyzed to show cash and credit business separately. 

This Survey, unlike regular Censuses of Business, is not intended to present a complete 
picture of the optical goods trade, but rather to provide a reliable indicator of trends since the 
last Census. It was conducted by mail from lists made up only of establishments included in the 1935 
Census, all new ones since 1935 being omitted. Those with sales less than $25,000 for the year 1935 
were likewise omitted as they account for but a negligible portion or the total business. Reporting 
was purely on a voluntary basis with only one reminder follow-up; hence, not all establishments con- 
tacted submitted returns. This report, in order to provide reliable trend information, is further 
limited to those establishments engaged primarily in selling optical goods at wholesale during the 
year 1935 and which still operate in a similar manner. 

Three Regular Censuses 

Three regular Censuses of Business have been taken covering the years 1929, 1933 and 1935, 
respectively Below is a comparison of the number of establishments and sales of service wholesalers 
and manufacturers' sales branches engaged primarily in selling optical goods. 



Service Wholesalers 



Manufacturers' Sales 
Branches 



Number of 
establishments 



Net sales 



Number of 
establishments 



Net sales 



1929 Census 
1933 Census 
1935 Census 

Percent change 
1929 to 1933 
1933 to 1935 



256 
311 
385 



21.5 
23.8 



$24,555,000 
17,558,000 
27,814,000 



28.5 
58.4 



Not available 
193 $13,738,000 
206 18,951,000 



+ 6.7 



+ 37.9 



Identical establishments in this Survey: 



1935 
1936 
1937 



124 
124 
124 



$11,149,000 
13,289,000 
13,915,000 



152 
152 
152 



$17,486,000 
21,093,000 
22,814,000 



Percent change, identical establishments 

1935 to 1936 + 19.2 

1936 to 1937 + 4.7* 



+ 20.6 

+ 8.2 



40 Percent Sample for Servic e Wholesalers 

The 124 service wholesalers included in this Survey represented 32 percent of the total 
number and accounted for 40 percent of the sales of all service wholesalers specializing in the op- 
tical goods business in 1935. Likewise the 152 manufacturers' sales branches constitute a sample 



Page 2 

of 74 percent of the number and 92 percent of sales for all sales branches in 1935. 



* 



Table 3, attached, measures the size of the sample included in this Survey in terms of the 
1935 Census. In this table the number of those included, together with their 1935 sales and pay roll, 
is compared by geographic divisions with the total in 1935. For convenience in using the information, 
the percent sample, establishments and sales, is reproduced in Tables 1 and 2. 

Table 2 presents comparable information by geographic divisions as to sales and stocks of 
the 124 service wholesalers and the 152 manufacturers' sales branches for the years 1935, 1936 and 
1937, and on pay roll for the years 1935 and 1937. 

Quarterly Sales, 1937 and First Half of 1938 

A measure of the short-term trend in the optical goods trade is given in terms of quarter- 
ly sales for the year 1937 and the first half of 1938. Quarterly sales by geographic divisions are 
shown in Table 1. The summary for the United States follows: 



124 Service Wholesalers 



152 Manufacturers • 
Sales Branches 



Period 


Net sales 


1st Qr. 
2nd Qr. 
3rd Qr. 
4th Qjr. 


1937 
1937 
1937 
1937 


$3,379,000 
3,435,000 
3,670,000 
3,431,000 


1st Qr. 

2nd Qr. 


1938 
1938 


3,051,000 
2,983,000 



% change from 
preceding quarter 



1.7 

6.8 
6.5 



11.1 
2.2 



Net sales 

$5,589,000 
5,861,000 
6,095,000 
5,269,000 

4,718,000 
4,698,000 



% change from 
preceding quarter 



+ 4.9 
+ 4.0 
- 13.6 



10.5 
0.4 



SIZE OF ESTABLISHMENT 



Of the 124 service wholesalers included in this Survey, 119 are classified as wholesale 
merchants of the conventional type and 5 as importers. The 119 wholesale merchants are arranged ac- 
cording to 1935 size in Table A, below, where their number and sales are compared by size classifi- 
cation with all wholesale merchants specializing in optical goods during that year. The sample in 
this Survey (percent of 1935 total reporting for 1937), both number of establishments and sales, is 
smallest in the under $50,000 bracket, and increases with the size. Only 21 percent of the number 
in the under $50,000 bracket are included in the Survey as compared with 46 percent for the $50,000 - 
$99,999 group; 52 percent for the $100,000 - $199,999 classification; and 47 percent for the $200,000 
and-over bracket. The largest sample in terms of sales is in the $200, 000 -and -over bracket, 52 per 
cent, while the smallest is in the under-$50,000 group, 31 percent. 

TABLE A. -SAMPLE BY SIZE OF ESTABLISHMENT-WHOLESALE MERCHANTS ONLY 



Size of establishment 


Number of 
establishments 


Net sales-1935 


Percent sample 


(Net sales in 1935) 


1935 
Census 


1937-38 
Survey 


1935 
Census 


1937-38 
Survey 


Estab- 
lishments 


Net 
sales 


Total 


377 
19 
48 
84 

223 


119 

9 

25 

39 

46 


$26,665,000 
5,191,000 
6,499,000 
5,592,000 
5,497,000 


$10,359,000 


32 
47 
52 
46 
21 


39 


$200,000 and over 
$100,000 - $199,999 
$50,000 - $99,999 
Under $50,000 


2,676,000 
3,491,000 
2,480,000 
1,712,000 


52 
54 
44 
31 






i 



Page 3 

Increases by Size, 1937 over 1935 

Fercentage increases in sales, pay roll and stocks — 1937 over 1935 — of the 119 whole- 
sale merchants included in this Survey are shown in Table B, below, by size of establishment. It 
is interesting to note that in general the smaller establishments, those with sales less than 
$100,000 in 1935, show better than average gains in business -- 28.9 percent for those under $50,000 
and 26.0 percent for the $50,000 to $99,999 group as compared with an average of 23.0 percent for 
all size brackets. Only the $50,000 - $99,999 bracket shows a larger gain in business than in pay 
roll or stocks -- 26.0 percent increase in sales as compared with 17.5 percent for pay roll and 11.4 
percent for stocks. 

TABLE B. -INCREASES IN SALES, PAY ROLL AND STOCKS, 1937 OVER 1935, 
BY SIZE OF ESTABLISHMENT 



Size of establishment 
(Net sales in 1935) 


Number of 
establishments 


Percent 


increase, 1937 over 1935 


Sales 


Pay roll 


Stocks 
(end of year) 


Tctal 
$200,000 and over 
$100,000 - $199,999 
$50,000 - $99,999 
Under $50,000 


119 

9 

25 

39 

46 


23.0 
22.3 
18.6 
26.0 
28.9 


25.0 
25.2 
27.4 
17.5 
30.2 


19.0 
28.1 
15.5 
11.4 
19.1 



Changes from one size bracket to another, 1935 to 1937, are shown in Table C. In keeping 
with the general increase in sales, the trend was from the lower to the upper groups. For example, 
15 of the 119 houses were in the $200 ,000-and-over group in 1937 as compared with only 9 in 1935. 
On the other hand only 29 houses had sales of less than $50,000 in 1937, as compared with 46 in 
1935. A total of 32 moved up in size brackets, while only 3 dropped to lower groups. 

TABLE C. --NUMBER OF ESTABLISHMENTS BY SIZE CLASSIFICATION; 1935 AND 1937 



Size of establishment 
(based on net sales) 


Total 

establishments 

1935 


$200,000 

and 

over 

in 
1937 


$100,000 

to 
$199,999 

in 
1937 


$50,000 

to 
$99,999 

in 
1937 


Under 

$50,000 

in 

1937 


Total establishments, 1937 
$200,000 and over in 1935 
$100,000 - $199,999 
$50,000 - $99,999 
Under $50,000 


119 

9 

25 

39 

46 


15 

9 
6 


27 

18 
7 
2 


46 

1 
30 
17 


29 

2 
27 



T ERMS OF SALE 

The Bureau of the Census collected information in this Survey for the first time on the 
usual terms of sale. Each cooperating establishment was asked to report its usual credit period and 
its customary cash discount rate, if any. In addition, sales for the year 1937 were to be analyzed 
to show "spot cash" business; credit sales 10 days or less, and credit of more than 10 days. Houses 
granting discounts for early payment of time sales were asked to report the percentage of their 
credit sales discounted in 1937. The results of these inquiries are presented for service whole- 
salers in Tables D and E. Not all houses were able to supply the information, hence, the number of 
establishments in these tables is less than the total number included in the Survey. 

Credit Period and Rate of Discount 



Table D classifies 121 of the 124 service wholesalers according to their usual credit 
periods and cash discount rates. It should be noted that these are the usual terms for the houses, 
and thet either or both the credit period and the rate of discount may vary with the commodity sold 
and with the customer. Also the classification as given here represents the policy of the house 
from which practice may vary. 



Page 4 

As shown in Table D, the customary credit extension in the optical goods business is 30 
days or end of the month. A cash discount of two percent is usually granted (reported by 96 of the 
121 establishments analyzed) although 21 houses normally bill net. Four houses failed to state 
their rate of cash discount. 



TABLE D. --121 SERVICE WHOLESALERS CLASSIFIED ACCORDING TO USUAL TERMS OF SALE 



Usual Credit Period 



Total 
number of 

estab- 
lishments 



Usual discount rate 




Discount 

granted, 

rate not 

stated 



SERVICE WHOLESALERS 



Total establishments 
30 days 


121 
44 


21 
19 


1/96 
23 


4 
2 


E.C.M. 


37 


— 


37 


— 


Feriods not stated 


40 


2 


36 


2 



* Cash discount not usually granted. 

1/ 66 establishments reported their discount period as 10 days; 24 as 10th proximo; and 6 as 30 days. 

Cash vs. Credit Sales 



The cash-credit division of 1937 sales is given in Table E. Approximately all sales are on 
credit for a period of more than 10 days (94.3 percent). "Spot cash" sales represent 4.1 percent of 
the total and credit of less than 10 days amounted to only 1.6 percent. 



TABLE E. --CASH-CREDIT ANALYSIS OF SALES -121 SERVICE WHOLESALERS 







Usual rate of discount 








Discount 


Usual Credit Period 


Total 


Net 


2% 


granted, 

rate not 

stated 


Number of establishments 


121 


21 


96 


4 


Net sales (1937) 


$13,731,000 


$2,707,000 


$10,653,000 


$371,000 


Spot cash 


561,000 


19,000 


501,000 


41,000 


Credit 10 days or le3S 


226,000 


15,000 


209,000 


2,000 


Credit more than 10 days 


12,944,000 


2,673,000 


9,943,000 


328,000 


Percent of net sales 










Spot cash 


4.1 


0.7 


4.7 


11.1 


Credit 10 days or less 


1.6 


0.6 


2.0 


0.5 


Credit more than 10 days 


94.3 


98.7 


93.3 


88.4 






Percent of < 


credit sales d 


iscounted 


Percent of all credit sales 




1 






discounted (weighted average) 




1 


67.6 


27.8 



f 



Credit Sales Discounted 

The extent to which customers take advantage of cash disccunts where allowed is also shown 
in Table E. The 96 houses selling on a two percent bssis discounted 67.6 percent of their 1937 
credit sales. 



- - 

The current Census Survey of Business includes retail as well as wholesale trade and is 
nation-wide in scope. It is being conducted by the Bureau of the Census with funds provided by the 
Works Progress Administration. The project is under the direction of Fred A. Gosnell, Chief Statis- 
tician, who was also in charge of previous Business Censuses. Wholesale trade reports are prepared 
under the immediate supervision of John Albright, assisted by James D. Lenig. 



# 



Page 5 



CENSUS SURVEY OF BUSINESS: 1937-38 


WHOLESALE DISTRIBUTION 


OPTICAL GOODS 






TABLE l.-NET SALES BY QUARTERS: 1937 AND FIRST HALF OF 1938 






FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 








Size Of 
















Sample 


No. Of 




Net Sales By Quarters 




Percent 




Compared 


Estab- 


Net 


(add 000) 






Chance 




With 1935 














DIVISION 


Census 


MENTS 

Includ- 
ed In 


Year 

1937 


1937 


1938 


1st Qr. 

1937 

To 


2nd Qr 

1937 
To 


Estab- 
lish- 
ments 


NET. 


1ST Qr. 


2nd Qr. 


3rd Qr. 


4th Qr. 


1ST Qr. 


2ND QR. 




Sales 


1937-38 
Survey 




Jan. 1 


April 1 


July 1 


Oct 1 


Jan. 1 


April 1 


1st Qr 


2nd Qr. 




% 


% 


(add 000 ) 


Mar. 31 


June 30 


Sept 30 


Dec. 31 


Mar. 31 


June 30 


1938 


1938 


SERVICE AND LIMITED-FUNCTION WHOLESALERS 


UNITED STATES 
New England 


32 


40 


124 


$13,915 


$3,379 


$3,435 


$3,670 


$3,431 


$3,051 


$2,983 


- 9.7 


-13.2 


43 


74 


12 


1,455 


345 


352 


378 


380 


290 


307 


-15.9 


-12.8 


Middle Atlantic 


41 


53 


43 


5,198 


■ 1,296 


1,290 


1,306 


1,306 


1,058 


1,061 


-IS. 4 


-17.8 


East North Central 


14 


26 


14 


2,627 


644 


651 


719 


613 


652 


586 


+ 1.2 


-10.0 


West North Central 


24 


24 


13 


986 


218 


235 


292 


241 


242 


221 


+11.0 


- 6.0 


South Atlantic 


64 


79 


16 


1,402 


352 


349 


370 


331 


315 


325 


-10.5 


- 6.9 


Mountain 


53 


76 


8 


582 


131 


146 


159 


146 


125 


123 


- 4.6 


-15.8 


Pacific 


38 


28 


12 


1,270 


307 


317 


328 


313 


279 


274 


- 9.1 


-13.6 


Other Divisions 


22 


24 


6 


395 


86 


95 


118 


96 


90 


86 


+ 4.7 


- 9.5 


MANUFACTURERS' SALES BRANCHES (with stocks) 


UNITED STATES 
New England 


1/ 74 


1/ 92 


152 


22,814 


5,589 


5,861 


6,095 


5,269 


4,713 


4,693 


-15.6 


-19.3 


_.. 


__ 


16 


1,904 


504 


475 


465 


460 


376 


394 


-25.4 


-17.1 


Middle Atlantic 


— 


— 


22 


6,780 


1,671 


1,797 


1,721 


1,591 


1,393 


1,435 


-16.6 


-20.1 


East North Central 


— 


— 


31 


4,935 


1,241 


1,277 


1,349 


1,068 


971 


911 


-21.8 


-28.7 


West North Central 


— 


— 


19 


2,624 


617 


643 


755 


604 


567 


509 


- 8.1 


-21.5 


South Atlantic 


— 


— 


21 


1,887 


469 


469 


512 


437 


414 


402 


-11.7 


-14.3 


East South Central 


-- 


— 


10 


825 


196 


203 


231 


195 


179 


182 


- 8.7 


-10.3 


West South Centrel 


— 


— 


15 


1,763 


402 


430 


511 


420 


393 


409 


- 2.2 


- 4.9 


Mountain 


— 


— 


4 


429 


101 


109 


117 


102 


81 


79 


-19.8 


-27.5 


Pacific 


~ 


— 


14 


1,667 


388 


453 


434 


392 


344 


377 


-11.3 


-16.8 


+ Increase - Decrease 






* Percentages in this column represent 1935 sales of establishments included in this survey, divided by total 1935 sales of eacl 


classification. 


1/ 1935 figures not available for calculating percent sample by geographic divisions. 






Stales Comprising Geographic Divisions: 






NEW ENCLAND-Conn., Maine, Mass., N. H.. R. /.. VI. EAST SOUTH CENTRAL -Ala., Ky.. Mist., Tenn. 


MIDDLE ATLANTIC-N. J., N. Y., Pa. WEST SOUTH CENTRAL-Ark., La., Okie., Tex. 


EAST NORTH CENTRAL-IIL, Ind., Mich., Ohio, Wis. MOUNTAIN— Ariz., Colo., Idaho. Mont., Nee.. N. Men., Utah, Wyo 


WEST NORTH CENTRAL- Iowa, Kanj., Minn., Mo., Nebr., N. Dak., S. Dak. PACIFIC— Calit., Oreg.. Wash. 






SOUTH ATLANTIC- Dei, D C Flo., C 


a., Mi., 


N. C, S 


. C. Vo., 


W. Vo. 






.# 













Page 6 



CENSUS SURVEY OF BUSINESS: 1937-38 


WHOLESALE DISTRIBUTION 




OPTICAL GOODS 








TABLE 2.- SALES, PAY ROLL AND STOCKS: 1937, 1936 AND 1935 








FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 








Size Of 

Sample 

Compared 

With 1935 


No. Of 
Estab- 


Net Sales 


Pay Roll** 


Stocks On Hand 


Percent Increase 




lish- 






End Of Year 


1935 to 1937 


DIVISION 


Census 


ments 
Includ- 
ed In 
1937-38 
Survey 


(add 000) 


(add ooo) 




(add 000) 






Estab- 
lish- 
ments 

% 


Net* 
Sales 

% 


1937 


1936 


1935 


1937 


1935 


1937 


1936 


1935 


Net 
Sales 


Pay 

Roll 


Stocks 


SERVICE AND LIMITED-FUNCTION WHOLESALERS 


UNITED STATES 
New England 


32 


40 


124 


413,915 


$13,289 


111,149 


$3,382 


$2,683 


$2,332 


$2,153 


SI, 954 


24.8 


26.1 


19.3 


43 


74 


12 


1,455 


1,387 


1,212 


244 


212 


232 


218 


221 


20.0 


15.1 


5.0 


Middle Atlantic 


41 


53 


43 


5,198 


5,092 


4,107 


1,238 


985 


961 


889 


803 


26.6 


25.7 


13.7 


East North Central 


14 


26 


14 


2,627 


2,344 


2,078 


795 


610 


484 


396 


367 


26.4 


30.3 


31.9 


West North Central 


24 


24 


13 


986 


948 


807 


326 


250 


126 


132 


90 


22.2 


30.4 


40.0 


South Atlantic 


64 


79 


16 


1,402 


1,298 


1,099 


265 


197 


221 


199 


181 


27.6 


34.5 


22.1 


Mountain 


53 


76 


8 


582 


565 


496 


147 


130 


72 


71 


67 


17.3 


13.1 


7.5 


Pacific 


38 


28 


12 


1,270 


1.296 


1,060 


277 


226 


187 


204 


181 


19.8 


22.6 


3.3 


Other Divisions 


22 


24 


6 


395 


359 


290 


90 


73 


49 


44 


44 


36.2 


23.3 


11.4 


MANUFACTURERS' SALES BRANCHES (with stocks) 


UNITED STATES 


1/74 


1/92 


152 


22,814 


21,093 


17,486 


3,725 


3,082 


4,546 


3,624 


3,088 


30.5 


20.9 


47.2 


New England 








15 


1,904 


1,774 


1,593 


313 


288 


305 


278 


233 


19.5 


8.7 


30.9 


Middle Atlantic 


— 


— 


22 


6,730 


6,068 


4,682 


884 


650 


1,636 


1,217 


1,104 


44.8 


36.0 


48.2 


East North Central 


— 


— 


31 


4,935 


4,595 


3,901 


851 


704 


1,103 


900 


708 


26.5 


20.9 


55.8 


West North Central 


— 


— 


19 


2,624 


2,501 


2,103 


483 


431 


474 


386 


334 


24.8 


12.1 


41.9 


South Atlantic 


— 


— 


21 


1,887 


1,698 


1,416 


369 


324 


358 


273 


244 


33.3 


13.9 


46.7 


East South Central 


— 


— 


10 


825 


778 


664 


173 


161 


112 


108 


97 


24.2 


7.5 


15.5 


West South Central 


— 


— 


15 


1,763 


1,597 


1,313 


304 


253 


292 


230 


178 


34.3 


20.2 


64.0 


Mountain 


— 


— 


4 


429 


397 


361 


78 


77 


88 


70 


58 


18.8 


1.3 


51.7 


Pacific 


— 


— 


14 


1,667 


1,685 


1,453 


270 


194 


178 


152 


132 


14.7 


39.2 


34.8 


* Percentages in this colun 


in represent 1935 sales of establishments included in this survey, divided by total 1935 sales ot each classification. 




* * Pay roll not available fo 


f year 1936. Pay roll includes compensation of both full-time and part-time employees, but not of proprietors and firm members of 


j unincorporated businesses. 








\J 1935 figures not availab 


e tor calculating percent sample by geographic divisions. 

Slates Comprising Geographic Divisions: 






NEW ENCLAND-Conn., Maine, Ma,,., N. H.. R. /., VI. EAST SOUTH CENTRAL -Ala., Ky., M.»., Term. 




MIDDLE ATLANTIC-N. ;., 


(V. Y., Pa. WEST SOUTH CENTRAL-Ark., La., Okla., Tex. 




EAST NORTH CENTRAL- 


Ill, Ind., Mich., Ohio, Wis. MOUNTAIN— Ariz.. Colo., Idaho, Mont. Neo.. N. Mex., Ulah, Wyo. 




WEST NORTH CENTRAL- 


■Iowa, Kans., Minn., Mo., Near., N. Dak., S. Dak. PACIFIC— Calit., Oreg.. Wash 






SOUTH ATLANTIC-Del., 


3. C, Fl 


a., Ga., 


MA, N. C. 


S. C, Va., 


W. Va. 





















I ) 



Page 7 



CENSUS SURVEY OF BUSINESS: 1937-38 



OPTICAL GOODS 

TABLE 3.-SIZE OF SAMPLE 

1937 SURVEY COMPARED WITH 1935 CENSUS 

ESTABLISHMENTS, SALES AND PAY ROLL BY GEOGRAPHIC DIVISIONS 



WHOLESALE DISTRIBUTION 



DIVISION 



Number Of 
Establishments 



1935 
Census 



Included in 
1937-38 
Survey 



Number 



% 
Sample 



Net Sales 

l.dd 000) 



1935 
Census 



1935 Sales Of 
Those Included 
In 1937-38 Survey 



Amount 



% 
Sample 



Pay Roll.' 

(add 000) 



1935 
Census 



1935 Pay Roll Of 
Those Included 
In 193738 Survey 



Amount 



Sample 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



UNITED STATES 

New England 
Middle Atlantic 
East North Central 
West North Central 
South Atlantic 
Mountain 
Pacific 
Other Divisions 



385 



124 



28 


12 


43 


106 


43 


41 


98 


14 


14 


54 


13 


24 


25 


16 


54 


15 


8 


53 


32 


12 


38 


27 


6 


22 



32 



$27,814 



1,638 
7,757 
8,047 
3,313 
1,396 
649 
3,794 
1,220 



$11 , 149 



1,212 
4,107 
2,078 

807 
1,099 

496 
1,060 

290 



40 



74 
53 
26 
24 
79 
76 
28 
24 



$6,504 



320 
1,734 
2,141 
815 
274 
148 
812 
260 



f 2 , 683 



41 



212 


66 


985 


57 


610 


28 


250 


31 


197 


72 


130 


88 


226 


28 


73 


28 



MANUFACTURERS' SALES BRANCHES (with stocks) 



UNITED STATES 

New England 
Middle Atlantic 
East North Central 
West North Central 
South Atlantic 
East South Central 
West South Central 
Mountain 
Pacific 



±L 



206 



152 



16 
22 
31 
19 
21 
10 
15 
4 
14 



74 



1/ 18,951 



17,486 



1,593 
4,682 
3,901 
2,103 
1,416 

664 
1,313 

361 
1,453 



92 



1/ 3,542 



3,082 



288 
650 
704 
431 
324 
161 
253 
77 
194 



87 



* Pay roll includes compensation of both full-time and part-time employees, but not of proprietors and firm members of unincorporated businesses. 
_1/ 1935 Census figures not available by geographic divisions. 

States Comprising Geographic Divisions: 
N. H., R. /., Vl. 



NEW ENCLAND-Conn., Maine. Mass., 

MIDDLE ATLANTIC-IS. J.. N. Y., Pa. 

EAST NORTH CENTRAL-IIL, Ind., Mich., Ohio, Wis. 

WEST NORTH CENTRAL-lowa, Kans., Minn., Mo., Near., N. Dak., S. Da*. 

SOUTH ATLANTIC-DeL, D. C, Fla., Ca., Md ., N. C, S. C, Va., W. Va. 



EAST SOUTH CENTRAL -Ala., Ky., 
WEST SOUTH CENTRAL-Ark., La., 
MOUNTAIN—Ariz.. Colo., Idaho. Mo, 
PACIFIC— Calif., Orel.. Wash. 



Miss., Tenn. 
Okla., Tex. 

:., Nev.. N. Mex 



Utah, Wyo. 



* 



UNITED STATES DEPARTMENT OF COMMERCE 

Harry L. Hopkins, Secretary 

BUREAU OF THE CENSUS 

William L. Austin. Director 



CENSUS SURVEY OF BUSINESS: 1937-38 



WHOLESALE DISTRIBUTION 



PAINTS AND VARNISHES 

::a of the census 

LIBRARY^ 




JANUARY, 1939 



CENSUS SURVEY OF BUSINESS: 1937-38 
Wholesale Distribution 

PAINTS AND VARNISHES 



This is one of a series of final reports presenting the findings of the Census Survey 
of Business for the year 1937 and the first half of 1938. Contained herein are dollar sales of 
140 identical service wholesalers and 148 manufacturers' sales branches for the years 1935, 1936, 
1937 and the first half of 1938; pay roll for the years 1935 and 1937; and the value of stocks 
on hand at the end of the years 1935, 1956 and 1937. Sales for the year 1937 and the first half 
of 1938 are shown by quarters. As added features, changes in the size of establishments, 1935 
to 1937, are shown, establishments are classified according to their usual terms of sale; and 
sales for the year 1937 are analyzed to show cash and credit business separately. 

Unlike regular Censuses of Business, this Survey is not intended to present a complete 
picture of the paint and varnish trade, but rather to provide a reliable indicator of trends 
since the last Census. It was conducted by mail from lists made up only of establishments in- 
cluded in the 1935 Census, all new ones being omitted. Those with sales of less than $25,000 
for the year 1935 were likewise omitted, as they account for only a negligible portion of the 
total business. Reporting was purely on a voluntary basis with only one reminder follow up; 
hence, not all establishments contacted submitted returns. This report, in order to provide re- 
liable trend information, is further limited to those establishments engaged primarily in sell- 
ing paints and varnishes at wholesale during the year 1935 and which continue to operate in a 
similar manner. 



SIZE OF SAMPLE 



A total of 140 service wholesalers and 148 manufacturers' sales branches are included 
Ln this Survey. The 140 service wholesalers represented 18 percent of the number and accounted 
for 27 percent of the business of all service and limited-function wholesalers engaged primarily 
fen selling paints and varnishes in 1935. Similarly, the 148 manufacturers' sales branches con- 
stitute a sample of 56 percent in number and 44 percent in sales. A summary comparison follows: 



Service and Limited- 
Function Wholesalers 



Manufacturers ' 
Sales Branches 



Number of 

Estab- 
lishments 



Net Sales 



Number of 

Estab- 
lishments 



Net Sales 



1935 Census 
1937-38 Survey 
Percent sample 

Substantial Increases ln Sales 



772 

140 

18 



£66, 328, 000 

18,095,000 

27 



265 

148 

56 



$168,189,000 

74,334,000 

44 



Net sales of 140 identical service wholesalers increased 14.7 percent from 1935 to 1936 
and 6.4 percent from 1936 to 1937, or 22.0 percent between 1935 and 1937. Likewise, the business 
of the 148 manufacturers* sales branches increased 20.4 percent between 1935 and 1936 and 15.4 
percent from 1936 to 1937 or 39.0 percent from 1935 to 1937. Sales of the identical establish- 
ments for the years 1935, 1936 and 1937 are given below: 



Year 

1935 
1936 
1937 



Service Wholesalers 



Manufacturers ' 
Sales Branches 



Number of 




Number of 


Estab- 


Net Sales 


Estab- Net Sales 


lishments 




lishments 


140 


$18,095,000 


148 $ 74,334,000 


140 


20,747,000 


148 89,476,000 


140 


22,069,000 


148 103,289,000 



Percent change, 1935 to 1937 



22.0 



39.0 



Wage 2 



234 Million Dollars For Manufacturers' Sales Branches In 1937 

If the 1937 increase of 39.0 percent in sales over 1935, as found in this Survey for 
sales branches, is considered representative, total sales of all manufacturers* sales branches 
engaged primarily in selling paints and varnishes at wholesale exceeded 234 million dollars in 
1937. Likewise, if the 22.0 percent increase in sales for service wholesalers is considered 
representative, the sales of all service and limited-function wholesalers must have approximated 
81 million dollars in 1937. 

Pay Roll Increased More Than Sales 






It is significant to note that pay roll (including salaries of executive and corpora- 
tion officers) of service wholesalers increased more than sales between 1935 and 1937 — 32.7 
percent for pay roll as compared with 22.0 percent for sales — with the result that it increased 
from $12.10 for every one hundred dollars of sales in 1935 to $13.20 per hundred in 1937. In 
the case of manufacturers* sales branches, both sales and pay roll were up 39.0 percent between 
1935 and 1937. Percentage increases (1937 over 1935) in sales, pay roll and stocks are given 
below: 



Type of Establishment 



140 Service wholesalers 

148 Manufacturers' sales branches 



Percent increase, 1937 over 1935 

Stocks 
Sales Pay roll (end of year) 



22.0 
39.0 



32.7 
39.0 



15.8 
21.5 



Quarterly Sales, 1937 and First Half of 1938 

A measure of the short-term trend in the wholesale paint and varnish trade is given in] 
terms of quarterly sales for the 140 service wholesalers and 148 manufacturers' sales branches 
covering the year 1937 and the first half of 1938. Quarterly sales by geographic divisions are 
shown in Table 1. The summary for the United States follows: 



Period 



Service and Limited- 
Function Wholesalers 



Manufacturers ' 
Sales 
Branches 



Number of establishments included 
Percent increase (+) or decrease (• 
in sales 
1st Qr. to 2nd Qr. 1937 
2nd Qr. to 3rd Qr. 1937 
3rd Qr. to 4th Qr. 1937 
4th Qr. 1937 to 1st Qr. 1938 
1st Qr. 1938 to 2nd Qr. 1938 



140 



57.7 
18.8 
24.7 
6.1 
50.7 



148 



15.9 
13.6 
19.7 
20.2 
3.0 



1st Qr. 1938 vs. 1st Qr. 1937 
2nd Qr. 1938 vs. 2nd Qr. 1937 



9.4 
13.4 



15.7 
25.0 



Table 3, attached, measures the size of the sample included in this Survey in terms of 
the 1935 Census. In this table the number of those included, together with 1935 sales and pay 
roll, is compared by geographic divisions with the totals in 1935. For convenience in using the 
information the percent sample, of establishments and sales, is reproduced in Tables 1 and 2. 



Table 2 presents comparable information by geographic divisions as to sales and stocks 
of the 140 service and limited -function wholesalers and the 148 manufacturers' sales branches 
for the years 1935, 1936 and 1937, and on pay roll for the years 1935 and 1937. 



Page 3 



| SIZE OF ESTABLISHMENT 

Of the 140 service wholesalers included in the Survey, 138 are classified ae wholesale merchants 
and 2 as importers. The 138 wholesale merchants are arranged according to their 1935 size in Table A, be- 
low, where their number and sales are compared by size classification with all wholesale merchants special- 
izing in paints and varnishes for that year. As might be expected, a greater percentage of larger estab- 
lishments are included than of smaller ones. For example, 14 of the 42 establishments (33%) with sales of 
$300,000-and-over and 40 of the 138 houses (29%) from $100,000 to $299,999 are included, as compared with 
only 40 of 442 establishments (9%) with sales of less than $50,000 in 1935. 



TABLE A. -SAMPLE BY SIZE OF ESTABLISHMENT-WHOLESALE MERCHANTS ONLY 



Size of establishment 


Number of 
establishments 


Net sales - 1935 
(add 000) 


Percent sample 


(Net sales in 1935) 


1935 
Census 


1937-38 
Survey 


1935 
Census 


1937-38 
Survey 


Estab- 
lishments 


Net 
Sales 


Total 
$300,000 and over 
$100,000 - $299,999 
$50,000 - $99,999 
Under $50,000 


766 
42 
138 
144 
442 


138 
14 

40 
44 
40 


$65,051 

22,597 

22,560 

10,267 

9,627 


$17,707 
6,298 
6,832 
3,112 
1,465 


18 
33 
29 
31 
9 


27 
28 
30 
30 
15 



Increases By Size, 1937 Over 1935 

Percentage increase in sales, pay roll and stocks — 1937 over 1935 — are shown for the 138 
wholesale merchants in Table B, by size of establishment. While all size classifications show substantial 
increases in sales, the largest gain is found in the under $50,000 group; 46.4 percent as compared with an 
average gain of 22.3 percent for all establishments. In general, the lower brackets show better gains in 
business than the upper ones. 

TABLE B.-INCREASES IN SALES, PAY ROLL AND STOCKS, 1937 OVER 1935, 
BY SIZE OF ESTABLISHMENT 



Size of establishment 
(Net sales in 1935) 



Number of 
establishments 



Percent increase, 1937 over 1935 



Sales 



Pay roll 



Stocks 
(end of year) 



WHOLESALE MERCHANTS ONLY 



Total 


138 


22.3 


32.5 


15.4 


$300,000 and over 


14 


21.6 


30.4 


12.5 


$100,000 - $299,999 


40 


18.1 


32.3 


18.5 


$50,000 - $99,999 


44 


21.5 


28.6 


11.6 


Under $50,000 


40 


46.4 


52.3 


23.4 



Changes of establishments from one size bracket to another, 1935 to 1937, are shown for the 138 
wholesale merchants in Table C. In keeping with the general increase in sales, the trend was from the low- 
er to the upper brackets. For example, 20 establishments were in the $300, 000-and -over group in 1937 as 
compared with only 14 in 1935. On the other hand, 40 houses had sales less than $50,000 in 1935 as compared 
with only 20 in 1937. A total of 43 establishments moved up in classification while only 2 dropped to low- 
er groups. 



TABLE C.-NUMBER OF ESTABLISHMENTS BY SIZE CLASSIFICATION; 1935 AND 1937 



) 



Size of establishment 
(based on net sales) 


Total 

establishments 

1935 


$300, 000- 
and over 
in 1937 


$100,000- 

$299,999 

in 1937 


$50,000- 
$99,999 
in 1937 


Under 
$50,000 
in 1937 


Total establishments, 1937 
$300,000 and over in 1935 
$100,000 - $299,999 in 1935 
$50,000 - $99,999 in 1935 
Under $50,000 in 1935 


138 
14 
40 
44 
40 


20 

14 

6 


49 

34 
15 


49 

27 
22 


20 

2 
18 



I 



i 



Page 5 



) 



TABLE E. --CASH-CREDIT ANALYSIS OF SALES 
(Sales expressed in thousands of dollars) 



Usual Credit Period 



Total 
number of 

estab- 
lishments 



Usual discount rate 



Net 



1% 



Zfo 



Combina- 
tion of 

rates 



Discount 

granted, 

rate not 

stated 



SERVICE WHOLESALERS 



Number of establishments 


135 


5 


10 


101 


14 


5 


Net sales (1937) 


$20,946 


$286 


|1,423 


$14,893 


$3,979 


$365 


Spot cash 


2,167 


37 


36 


1,648 


335 


111 


Credit 10 days or less 


886 


28 


104 


524 


222 


8 


Credit more than 10 days 


17,893 


221 


1,283 


12,721 


3,422 


246 


Peroent of net sales 














Spot cash 


10.4 


12.9 


2.5 


11.1 


8.4 


30.4 


Credit 10 days or less 


4.2 


9.8 


7.3 


3.5 


5.6 


2.2 


Credit more than 10 days 


85.4 


77.3 


90.2 


85.4 


86.0 


67.4 






Percent of credit 


sales discounted 


Percent of all credit sales 














discounted (weighted average) 






63.3 


45.7 


53.5 


16.8 



J 



MANUFACTURERS' SALES BRANCHES 



Number of establishments 


143 


— 


3 


96 


44 


~ 


Net sales (1937) 


$97,780 


— 


$4,960 


$33,071 


$59,749 


— 


Spot cash 


1,225 


— 


39 


913 


273 


— 


Credit 10 days or less 


4,431 


— 


920 


129 


3,382 


— 


Credit more than 10 days 


92,124 


— 


4,001 


32,029 


56,094 


— 


Percent of net sales 














Spot cash 


1.3 


— 


0.8 


2.8 


0.4 


— 


Credit 10 days or less 


4.5 


— 


18.5 


0.4 


■°5.7 


— 


Credit more than 10 days 


94.2 


— 


80.7 


96.8 


93.9 


— 




Percent of credit 


sales discounted 


Percent of all credit sales 










discounted (weighted average) 






81.9 


60.1 


43.9 





Credit Sales Discounted 

The extent to which customers take advantage of cash discounts is also shown in Table E. 
Service wholesalers selling on a one percent basis granted discounts on 63.3 percent of their 1937 
credit sales and those allowing two percent discounted on 45.7 percent of their 1937 business. The 
manufacturers* sales branches selling on a one percent basis granted discounts on 81.9 percent and 
those granting two percent allow discounts on 60.1 percent of their 1937 credit sales. 



- - 



.' 



The current Census Survey of Business includes retail as well as wholesale trade and is 
nation-wide in scope. It is being conducted by the Bureau of the Census with funds provided by the 
Works Progress Administration. The project is under the direction of Fred A. Gosnell, Chief Statis- 
tician, who was also in charge of previous Business Censuses. Wholesale trade reports are prepared 
under the immediate supervision of John Albright, assisted by James D. Lenig. 



Page 6 






CENSUS SURVEY OF BUSINESS: 1937-38 WHOLESALE DISTRIBUTION 

PAINTS AND VARNISHES i 

TABLE l.-NET SALES BY QUARTERS: 1937 AND FIRST HALF OF 1938 

FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 


DIVISION 


Sample 

Based on 

1935 

Census 


No. OF 

ESTAB. 

LISH- 

MENTS 

Report 

•ing 
1937-38 
Survey 


Net 
Sales 
Year 
1937 

[add 000 ) 


Net Sales By Quarters 
(add ooo) 


Percent 
Change 


1937 


1938 


1st Qr. 

1937 

To 

1st Qr 

1938 


2NDQR 
1937 
To 

2ndQr 
1938 


Estab- 
lish- 
ments 
% 


* 

Net 
Sales 

% 


1ST QR. 

Jan. 1 
Mar. 31 


2nd Qr. 

April 1 
June 30 


3rd Qr. 

July 1 
Sept. 30 


4th Qr. 

Oct 1 
Dec. 31 


1ST QR. 
Jan. 1 
Mar. 31 


2nd Qr. 

April 1 
June 30 


SERVICE AND LIMITED-FUNCTION WHOLESALERS 


UNITED STATES 

New England 

Middle Atlantic 

East North Central 

West North Central 

South Atlantic 

Pacific 

Other Divisions 


18 


27 


140 


$22,069 


$4,575 


$7,216 


$5,863 


$4,415 


$4,146 


$6,250 


- 9.4 


-13.4 


15 
17 
25 
24 
16 
8 
11 


24 
19 
39 
44 
36 
13 
10 


8 

36 

52 

23 

8 

7 

6 


1,172 
4,652 
8,409 
4,249 
1,991 
765 
831 


262 
907 
1,712 
939 
423 
163 
169 


371 

1,446 

2,375 

1,452 

594 

218 

260 


292 

1,237 

2,262 

1,105 

532 

207 

228 


247 
1,062 
1,560 
753 
442 
177 
174 


225 

826 

1,451 

919 

400 
150 
175 


343 

1,268 

2,388 

1,275 

544 

204 

223 


-14.1 

- 3.9 
-15.2 

- 2.1 

- 5.4 

- 8.0 
+ 3.6 


- 6.2 
-12.3 
-16.9 
-12.2 

- 8.4 

- 6.4 
-14.2 


MANUFACTURERS' SALES BRANCHES (with stocks) 


UNITED STATES 

New England 
Middle Atlantic 
East North Central 
West North Central 
South Atlantic 
East South Central 
West South Central 
Mountain 
Pacific 


56 


44 


148 


103,289 


22,797 


26,412 


30,002 


24,078 


19,222 


19,802 


-15.7 


-25.0 


a 
a 
a 
a 
a 
a 
a 
a 
a 


a 
a 
a 
a 
a 
a 
a 
a 
a 


10 

17 

29 

14 

10 

5 

4 

8 

51 


8,691 

16,458 

33,381 

6,456 

6,832 

J> 6,293 

25,178 


2,276 
3,677 
7,606 
1,364 
1,489 

1,327 

5,058 


2,298 
4,219 
8,858 
1,332 
1,793 

1,365 

6,547 


2,463 
4,587 
9,694 
2,147 
1,957 

1,893 

7,261 


1,654 
3,975 
7,223 
1,613 
1,593 

1,708 

6,312 


1,634 
3,106 
5,994 
1,215 
1,409 

1,270 

4,594 


1,700 
2,916 
6,130 
975 
1,396 

1,221 
5,464 


-28.2 
-15.5 
-21.2 
-10.9 

- 5.4 

- 4.3 

- 9.2 


-26.0 
-30.9 
-30.3 
-26.8 
-22.1 

-10.6 

-16.5 


+Increase - Decrease 

* Percentages in this column represent 1935 sales of establishments included in this survey, divided by total 1935 sales of each classification, 
a Figures not available for year 1935. 

States Comprising Geographic Division!: 

NEW ENCLAND-Conn., Maine, Mass., N. H., R. /., VI. EAST SOUTH CENTRAL-Ala., Ky., Miss., Tenn. 

MIDDLE ATLANT1C-N. J., N. v., p„. WEST SOUTH CENTRAL-Arh., U., Okla., Tex. 

EAST NORTH CENTRAL-IIL, Ind., Mich., Ohio, Wis. MOUNTAIN— Ariz., Colo.. Idaho. Mont.. Nev.. N. Mex., Utah, Wyo. 

WEST NORTH CENTRAL .Iowa, Kans.. Minn., Mo., Nebr., N. Dak., S. Dak. PACIFIC— Calit., Oreg., Wash. 

SOUTH ATLANTIC-Del., D. C, Fla., Co., Md., N. C, S. C, Va., W. Va. 





~) 



CENSUS SURVEY OF BUSINESS: 1937^8 



Page 7 

WHOLESALE DISTRIBUTION 



PAINTS AND VARNISHES 

TABLE 2.- SALES, PAY ROLL AND STOCKS: 1937, 1936 AND 1935 

FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 



DIVISION 



Size Of 

Sample 

Compared 

With 1935 

Census 



Estab- 
lish, 
ments 

% 



Net- 
Sales 



No. Of 
Estab- 
lish- 
ments 

Includ- 
ed In 

1937-38 
Survey 



Net Sales 

I. »dd 000) 



1937 



1936 



1935 



Pay Roll** 

(«dd 000) 



1937 



1935 



Stocks On Hand 
End Of Year 

(add 000) 



1936 



Percent Increase 
1935 to 1937 



Net 
Sales 



Pay 
Roll 



Stocks 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



UNITED STATES 

New England 

Middle Atlantic 

East North Central 

West North Central 

South Atlantic 

Pacific 

Other DiTlsions 



#22,069 



1,172 
4,652 
8,409 
4,249 
1,991 
765 
831 



#20,747 



1,134 
4,452 
7,842 
3,931 
2,018 
629 
741 



#18,095 



1,065 
4,022 
6,475 
3,471 
1,832 
581 
649 



#2,908 



177 
562 
1,197 
540 
237 
86 
109 



#2,192 



145 
485 
831 
386 
185 
65 
95 



$4,185 



235 
1,022 
1,433 

792 

379 
98 

226 



#4,036 



262 
1,009 
1,366 

724 

390 
80 

205 



#3,615 



235 
831 
1,272 
706 
291 
85 
195 



22.0 



10.0 
15.7 
29.9 
22.4 
8.7 
31.7 
28.0 



32.7 



22.1 
15.9 
44.0 
39.9 
28.1 
32.3 
14.7 



15.8 



0.0 
23.0 
12.7 
12.2 
30.2 
15.3 
15.9 



MANUFACTURERS' SALES BRANCHES 






UNITED STATES 

New England 
Middle Atlantic 
East North Central 
West North Central 
South Atlantic 
East South Central 
West South Central 
Mountain 
Pacific 



103,289 



8,691 

16,458 

33,381 

6,456 

6,832 

I 6,293 

25,176 



89,476 



7,709 

14,394 

29,264 

5,540 

5,438 

5,395 

21,736 



74,334 



6,107 

12,129 

23,371 

4,349 

5,110 

4,974 

18,294 



9,128 



642 

1,125 

2,604 

491 

549 

505 

3,212 



6,566 



523 
893 
1,849 
387 
374 

375 

2,165 



12,608 



527 

1,654 

2,817 

684 

543 

846 

5,537 



10,471 



452 

1,303 

2,518 

643 

446 

732 

4,377 



10,378 



414 
1,134 
2,865 

558 

474 

709 
4,224 



39.0 



42.3 
35.7 
42.8 
48.4 
33.7 

26.5 

37.6 



21.5 



27.3 

45.9 

- 1.7 

22.6 

14.6 

19.3 



- Decrease 

* Percentages in this column represent 1935 sales of establishments included in 
* * Pay roll not available for year 1936. Pay roll includes compensation of full- 
unincorporated businesses. 

a Figures not available for year 1935. 

Stale, Compriilng Geographic Divisions: 
NEW ENCLAND-Conn., Maine, Mom., N. H., R. I., Vl 
MIDDLE ATLANTIC-N. J., N. Y., Pa. 
EAST NORTH CENTRAL-ltt.. Ind., Mich., Ohio, Wix. 

WEST NORTH CENTRAL-lowa, Kan,., Minn., Ma., Nebr., N. Dak., S. Dak. 
SOUTH ATLANTIC-Dcl, D. C, Fla., Go., Mi., N. C. S. C, Va., W. Va. 



this survey, divided by total 1935 sales of each classification, 
time and part-time employees, but not of proprietors and firm members of 



EAST SOUTH CENTRAL~Ala., Ky., Mia.. Ttnn. 
WEST SOUTH CENTRAL-Ark, La., Ohio., Te*. 
MOUNTAIN— Ariz., Cola.. Idaho. Mont.. fVeo., N. Mei.. Utah, 
PACIFIC— CaUI., Oreg.. Wash. 



Wyo. 



J 



Page 8 



CENSUS SURVEY OF BUSINESS: 1937-38 


WHOLESALE DISTRIBUTION 


PAINTS AND VARNISHES 






TABLE 3.-SIZE OF SAMPLE 




| 


1937 SURVEY COMPARED WITH 1935 CENSUS 






ESTABLISHMENTS, SALES AND PAY ROLL, BY GEOGRAPHIC DIVISIONS 






Number Of 


Net Sales 


Pay Roll* 




Establishments 








DIVISION 




(add 000 ) 




add 000) 




Included In 




1935 Sales Of 




1935 Pay Roll Of 




1937-38 




Those Included 




Those Included 




1935 


Survey 


1935 


In 1937-38 Survey 


1935 


In 1937-38 Survey 




Census 




% 
Sample 


Census 




% 
Sample 


Census 




% 

Sample 






Number 




Amount 




Amount 


SERVICE AND LIMITED-FUNCTION WHOLESALERS 


UNITED STATES 
New England 


772 


140 


18 


| 66,328 


$18,095 


27 


$ 7,931 


$2,192 


28 


55 


8 


15 


4,517 


1,065 


24 


580 


145 


25 


Middle Atlantic 


216 


36 


17 


21,086 


4,022 


19 


2,035 


485 


24 


East North Central 


212 


52 


25 


16,683 


6,475 


39 


2,474 


831 


34 


West North Central 


94 


23 


24 


7,919 


3,471 


44 


969 


386 


40 


South Atlantic 


50 


8 


16 


5,028 


1,832 


36 


559 


185 


33 


Pacific 


89 


7 


8 


4,573 


581 


13 


463 


65 


14 


Other Divisions 


56 


6 


11 


6,522 


649 


10 


851 


95 


11 


MANUFACTURERS' SALES BRANCHES 


UNITED STATES 
New England 


265 


148 


56 


168,189 


74,334 


44 


12,802 


6,566 


51 


y 


10 


_ _ 


11 


6,107 





y 


523 


__. 


Middle Atlantic 




17 


— 




12,129 


— 




893 





East North Central 


— 


29 


— 


— 


23,371 


— 


__ 


1,849 




West North Central 


— 


14 


— 


— 


4,349 


— 


— 


387 


- 


South Atlantic 


— 


10 


— 


— 


5,110 


— 


— 


374 




East South Central 





5 














.' 


West South Central 


__ 


4 


~" 


"~ 


3,699 


~~ 


— 


250 


— 1 


Mountain 


— 


8 


— 


— 


1,275 


— 


— 


125 


— 


Pacific 


— 


51 


— 


— 


18,294 


— 


— 


2,165 


~ 


* Pay roll includes compensation of full time and part-time employees, but not of proprietors and firm members of unincorporated businesses. 


\] 1935 figures not available by geographic divisions. 






States Comprising Geographic Divisions: 






NEW ENCLAND-Conn., Maine, Mass.. N. H., ft. /., Vi. EAST SOUTH CENTRAL-Ala., Ky., M 


iss., Tenn. 




MIDDLE ATLANTIC-N. J., N. Y., Pa. WEST SOUTH CENTRAL-Ark., La., Ohla., Tex. 




EAST NORTH CENTRAL-Ill, Ind., Mich., Ohio, Wis. MOUNTAIN— Ariz., Colo., Idaho, Mont., 


Nev., N. Mex., 


Utah. Wyo. 


WEST NORTH CENTRAL-Iowa, Kans., Minn., Mo., Nebr., N. Dak., S. Dak. PACIFIC— Calif., Oreg., Wash. 






SOUTH ATLANTIC-Del., D. C, Fla., Co., Md., N. C, S. C, Va., W. Va. 






! 






Jl 



1 



I 



J 



t 



h 



i 






) 



UNITED STATES DEPARTMENT OF COMMERCE 

Daniel C. Roper, Secretary 

BUREAU OF THE CENSUS 

William L. Austin, Director 



CENSUS SURVEY OF BUSINESS: 1937-38 



WHOLESALE DISTRIBUTION 



TOBACCO AND ITS PRODUCTS (except leaf ) 



BUREAU OF THE CENSUS 
LIBRARY 




NOVEMBER, 1938 



.s- 



f *>*' -V 



1 



CENSUS SURVEY OF BUSINESS: 1937-38 
Wholesale Distribution 



TOBACCO AND ITS PRODUCTS (except leaf) 

This is one of a series of final reports presenting the findings of the Census 
Survey of Business of 1937-38. Contained herein are dollar sales of identical tobacco 
wholesalers for the years 1935, 1936, 1937 and the first half of 1938; pay roll for the 
years 1935 and 1937; and the value of stocks on hand at the end of the years 1935, 1936 
and 1937. Sales for the year 1937 and the first half of 1938 are shown by quarters. As 
added features, changes in the size of establishments, 1935 to 1937, are shown; whole- 
salers are classified according to their usual terms of sale; and sales for the year 1937 
are analyzed to show cash and credit business separately. 

Unlike regular Censuses of Business, this Survey is not intended to present a 
complete picture of wholesale trade, but rather to provide a reliable indicator of trends 
since the last Census. It was conducted by mail from lists made up only of establish- 
ments included in the 1935 Census, all new ones since 1935 being omitted. Those with 
sales less than $25,000 for the year 1935 were likewise omitted, as they constitute but 
a small proportion of total sales. Reporting was purely on a voluntary basis with only 
one reminder follow-up; hence, not all wholesalers who were contacted submitted returns. 
This report, in order to provide reliable trend information, is further limited to those 
establishments engaged primarily in selling tobacco and its products at wholesale during 
the year 1935 which still operate in a similar manner. 



Three Regular Censuses 



Three regular Censuses of Business have been taken covering the years 1929, 
1933 and 1935 respectively. Below is a comparison of the number of service and limited- 
function (cash-and-carry wholesalers and wagon distributors) wholesalers engaged pri- 
marily in selling tobacco and its products, together with their sales, pay roll and 
stocks on hand at the end of the year: 

Number of Stocks 

Establishments Net Sales Pa y Ro11 (end of year) 

1929 1,721 $858,329,000 $26,182,000 #47,495,000 

1933 1,739 #526,405,000 §15,531,000 #31,310,000 

1935 2,253 §783,368,000 §21,547,000 $40,902,000 

Percent change, all establishments: 

1929 to 1933 + 1.0 - 38.7 - 40.7 - 34.1 

1933 to 1935 + 29.6 + 48.8 ♦ 38.7 + 30.6 

Identical establishments in this Survey: 

1935 309 $202,569,000 $ 5,648,000 $ 9,882,000 

1936 309 §224,645,000 not available $11,419,000 

1937 309 $244,780,000 $ 6,545,000 $11,867,000 

Percent change, identical establishments: 

1935 to 1937 + 20.8 + 15.9 + 20.1 

The 309 wholesalers included in this report represented 14 percent of the total 
dumber and accounted for 26 percent of the sales of all service and limited-function to- 
bacco wholesalers in 1935. 



Page 2 



Table 3, attached, measures the size of the sample included in this Survey in 
terms of the 1935 total. In this table the number, together with 1935 sales and pay roll, 
of those included is compared by geographic divisions with the totals in the 1935 Census. 
For convenience in using the information, the percent sample of establishments and sales 
is reproduced in Tables 1 and 2. 

Table 2 presents comparable information by geographic divisions as to sales and 
stocks of the 309 wholesalers for the years 1935, 1936 and 1937 and on pay roll for the 
years 1935 and 1937. 

Quarterly sales, 1937 and the first half of 1938 

A measure of the short-term trend in the wholesale tobacco business is given in 
terms of quarterly sales of the 309 establishments for the year 1937 and the first half 
of 1938. Quarterly sales by geographic divisions are shown in Table 1. The summary for 
the United States follows: 



4 



Period 

1st Qr. 1937 

2nd Qr. 1937 

3rd Qr. 1937 

4th Qr. 1937 

1st Qr. 1938 

2nd Qr. 1938 



Net Sales 

$52,570,000 
$62,644,000 
$65,684,000 
$63,882,000 

$53,961,000 
$61,676,000 

SIZE OF ESTABLISHMENT 



Percent change from 
preceding quarter 



19.2 
4.9 
2.7 

15.5 
14.3 



r 



The 309 wholesalers 
tions performed or type of ope 
and-carry wholesalers and 8 as 
according to 1935 size in Tabl 
that year. Approximately one- 
1935 of more than $1,000,000 e 
one-tenth (46 of 640) of those 
of less then $25,000, which we 
for 38 percent of the total bu 



included in this report are classified on the basis of func- 
ration as follows: 274 as service wholesalers, 27 as cash- 
wagon distributors. The 274 service wholesalers are grouped 
e A, below, and are compared with all service wholesalers in 
third of all establishments (46 of 148) which had sales in 
ach are included in this Survey as compared with less than 

under $100,000. The latter group includes those with sales 
re omitted from the canvass. The 46 largest houses accounted 
siness of that size group in 1935. 



TABLE A. -ANALYSIS OF SAMPLE BY SIZE OF ESTABLISHMENT 



Size group 
(net sales in 1935) 


Number of 
Establishments 


Net Sales-1935 
(add 000) 


Percent 


Sample 


1935 
Census 


1937-38 
Survey 


1935 
Census 


1937-38 

Survey 


Estab- 
lishments 


Net 
Sales 


Total 


1,914 


274 


$744,644 


$199,083 


14 


27 


$1,000,000 and over 
$500,000 - $999,999 
$200,000 - $499,999 
$100,000 - $199,999 
Under $100,000 


148 
250 
532 
344 
640 


46 
60 
81 
41 
46 


$328,732 
$170,813 
$168,779 
$ 49,603 
$ 26,717 


$123,447 
$ 40,606 
$ 26,209 
$ 6,167 
$ 2,654 


31 
24 
15 
12 
7 


38 
24 
16 
12 

10 



Page 3 



Increases by size, 1937 over 1935 

Percentage increases between 1935 and 1937 in sales, pay roll and stocks are shown 
in Table B, below, by size of establishment. Smaller establishments show better than average 
gains in sales and at the same time were able to keep their inventories relatively low. 

TABLE B. -INCREASES IN SALES, PAY ROLL AND STOCKS, 1937 OVER 1935, 

BY SIZE OF ESTABLISHMENT 



Size of Establishment 


Number of 
Establishments 


Percent increase, 1937 over 1935 


(net sales in 1935) 


Sales 


Pay Roll 


Stocks 


Total 


274 


20.9 


15.8 


19.4 


$1,000,000 and over 
$500,000 - $999,999 
$200,000 - $499,999 
$100,000 - $199,999 
Under $100,000 


46 
60 
81 
41 
46 


16.6 
22.5 
36.2 
21.9 
37.5 


14.8 
14.2 
23.4 
11.2 
18.5 


24.1 
13.0 
15.2 
4.5 
10.0 



Changes in size brackets, 1935 to 1937, are shown in Table C. In keeping with the 
general increase in sales, the trend was from the lower to the upper groups. For example, 

houses had sales of less than $100,000 in 1935, whereas in 1937 only 35 were in this 
micket. Likewise, 57 were in the $l,000,000-and-over group in 1937 as compared with only 
46 in 1935. A total of 58 moved up in classification while only 7 dropped to lower groups, 
"our establishments increased as much as two size brackets. 

TABLE C. --NUMBER OF ESTABLISHMENTS BY SIZE CLASSIFICATION; 1935 AND 1937 



Size of Establishment 


Total 


$1,000,000 


$500,000- 


$200,000- 


$100,000- 


Under 


(based on net sales) 


1935 


and over 


#999,999 


§499,999 


$199,999 


$100,000 






in 1937 


in 1937 


in 1937 


in 1937 


in 1937 


Total establishments, 1937 


274 


57 


68 


76 


38 


35 


|1,000,000 and over in 1935 


46 


43 


3 








$500,000 - $999,999 in 1935 


60 


11 


49 








$200,000 - $499,999 in 1935 


81 


3 


16 


60 


2 




$100,000 - $199,999 in 1935 


41 






15 


24 


2 


Under $100,000 in 1935 


46 






1 


12 


33 



TERMS OF SALE 

The Bureau of the Census collected information in this Survey for the first time on 
i usual terms of sale. Each cooperating establishment was asked to report its usual credit 
period and its customary cash discount rate, if any. In addition, sales for the year 1937 
were to be analyzed to show "spot cash" business; credit sales 10 days or less and credit of 
more than ten days. Houses granting discounts for early payment of time sales were asked to 
report the percentage of their credit sales discounted in 1937. Of the 274 houses 257 sup- 
plied this information. 



(i 



Page 4 



c 



Credit period and rate of discount 

Table D shows the 257 houses classified according to their usual credit periods 
and cash discount rates. It should be noted that these are the usual terms for the houses, 
and that either or both the credit period and the rate of discount may vary with the com- 
modity sold or with the customer. Also the classification as given here represents the 
policy of the house from which practice may vary. Some of the most frequent credit periods 
in the tobacco trade in order are: 30 days, reported by 102 houses; spot cash (credit not 
usually extended) , 59 houses; while 41 establishments reported a combination of periods no 
one of which predominated and 21 sold on a 10 day basis. 

Of the 257 houses, 116 stated that they did not usually grant cash discounts, 
while 70 reported their prevailing rate as 2 percent. Five establishments reported other 
rates of cash discount, ranging from 1 to 8 percent, and 16 stated that their rates varied 
with commodities and customers, no one rate prevailing. Fifty indicated that they granted 
cash discount but failed to report a prevailing rate. 

TABLE D. --WHOLESALERS CLASSIFIED ACCORDING TO USUAL TERMS OF SALE 





Total 






Other 




Discount 




number of 






rates 


Combina- 


granted, 


Usual credit period 


Estab- 


Net* 


2$ 


(1-5- 


tion of 


rate not 




lishments 






7-etc.) 


rates Zf 


stated 


Total establishments 


257 


116 


70** 


5 


16 


50 


Spot cash (credit not usually granted) 


59 


59 










7 days 


8 


6 








2 


10 days 


21 


9 


8 


2 


1 


1 


15 days 


5 






1 


2 


2 


30 days 


102 


14 


54 






34 


Other periods 


9 


1 


8 








Combination of periods 1/ 


41 


23 




2 


13 


3 


Periods not stated 


12 


4 








8 



I 



* Cash discount not usually granted. 

** 8 establishments reported their usual terms as 2/10, n/10; 3 as 2/7, n/30; 

22 as 2/10, n/30; 8 as 2/15, n/30; 21 as 2/30, n/30; 8 reported other terms. 
1/ Period varies with commodity and customer. 
2/ Rate differs with commodity and customer; no customary rate. 



Cash vs. credit sales 

The 257 wholesalers reported the cash-credit division of their 1937 sales as fol- 
lows: one-fourth (22.9$) as "spot cash"; one-fourth (26.5$) credit of ten days or less; and 
one-half (50.6$) as credit of more than ten days. Those selling on a net basis, including 
11 cash-and-carry wholesalers, consistently reported the largest percentage of spot cash bus- 
iness (32.8$) but the portion of their business on credit of ten days or less was small (10.5$ 
The effect of the 2 percent cash discount rate is clearly shown in Table E where it is found 
that 65.7 percent of all sales of houses selling on this basis are for cash or on credit of no 
over ten days while all other classes reported over 50 percent credit for a longer period. 
Houses varying their rates of discount show the largest percentage of sales for credit of more 
than ten days. 



Page S 



TABLE E. -CASH-CREDIT ANALYSIS OF SALES OF 257 WHOLESALERS 
{Sales expressed in thousands of dollars) 








Total 


Usual rate of discount 


Credit period 


Net 


H 


Other 
rates 
(1-5- 


Combina- 
tion of 


Discount 

granted, 
rate not 










7-etc.) 


rates 


stated 


Number of establishments 


257 


116 


70 


5 


16 


50 


Net sales (1937) 


$217,750 


$74,600 


$91,901 


$1,188 


$13,989 


$36,072 


Spot cash 


49,933 


24,415 


14,802 


134 


3,068 


7,514 


Credit 10 days or less 


57,707 


7,863 


45,581 


456 


381 


3,426 


Credit more than 10 days 


110,110 


42,322 


31,518 


598 


10,540 


25,132 


Percent of net sales 














Spot cash 


22.9 


32.8 


16.1 


11.3 


21.9 


20.8 


Credit 10 days or less 


26.5 


10.5 


49.6 


38.4 


2.7 


9.5 


Credit more than 10 days 


50.6 


56.7 


34.3 


50.3 


75.4 


69.7 




Percent of credit sales 


discounted 


Percent of all credit sales 








discounted (weighted average) 


49.0 77.9 


84.4 


96.6 



redit sales discounted 



That customers take advantage of cash discounts, where allowed, is shown by the 
fact that one half or more of all credit sales are discounted (see Table E). Houses on a 
2 percent basis allowed discounts on 49.0 percent of their 1937 credit sales and for those 
granting other rates the amounts discounted exceeded 75 percent of the total. 

Wholesale Tobacco Distributors Described 



Wholesale tobacco distributors are defined for the purpose of this report, as ser- 
vice and limited-function (mail-order, cash-and-carry, and wagon distributor) wholesalers 
engaged primarily in selling tobacco products (cigars, cigarettes, smoking tobacco, etc.) at 
wholesale. Many of them sell smokers' supplies and some confectionery, groceries, paper and 
other related products. Some also sell at retail as well as at wholesale, but only those 
engaged chiefly in selling tobacco products in a wholesale manner are included in this re- 
lease. Sales branches and offices owned by tobacco manufacturers and operated primarily for 
the disposal of their products, as well as agency distributors, are omitted from this report. 






- - 



The current Census Survey of Business includes retail as well as wholesale trade 
and is nation-wide in scope. It is being conducted by the Bureau of the Census with funds 
provided by the Works Progress Administration. The project is under the direction of 
Fred A. Gosnell, Chief Statistician, who was also in charge of previous Business Censuses. 
Wholesale trade reports are prepared under the immediate supervision of John Albright. 



Page 6 



CENSUS SURVEY OF BUSINESS: 1937-38 


WHOLESALE DISTRIBUTION 


TOBACCO AND ITS PRODUCTS (except leaf) 


TABLE l.-NET SALES BY QUARTERS: 1937 AND FIRST HALF OF 1938 


FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 




Size Of 












Sample 


No. Of 




Net Sales By Quarters 


Percent 




Compared 


Estab- 


NET 


( add 000 ) 


Chance 


DIVISION 


With 1935 
Census 


L1SH- 
MENTS 

Includ- 
ed In 


Sales 
Year 
1937 






1937 


1938 


1st Qr. 

1937 

To 


2ND QR 
1937 
To 


Estab- 
lish- 


Net. 


1ST QR. 


2nd Qr 


3rd Qr. 


4th Qr. 


1ST Qr. 


2nd Qr 




ments 


Sales 


1937-38 
Survey 




Jan. 1 


April 1 


July 1 


Oct. 1 


Jan. 1 


April 1 


1st Qr 


2ND Qr. 




% 


% 


(add 000 ) 


Mar. 31 


June 30 


Sept. 30 


Dec. 31 


Mar. 31 


June 30 


1938 


1938 


SERVICE AND LIMITED-FUNCTION WHOLESALERS 


UNITED STATES 


14 


26 


309 


$244,780 


$52,570 


$62,644 


$65,684 


$63,882 


$53,961 


$61,676 


+ 2.6 


-1.5 


Service wholesalers 


14 


27 


374 


240,608 


51,645 


61,589 


64,587 


62,787 


52,995 


60,595 


+ 2.6 


- 1.6 


Cash-and-carry wholesalers 


19 


15 


27 


3,236 


733 


822 


839 


842 


744 


849 


+ 1.5 


+ 3.3 


Wagon distributors 
Geographic Divisions 


4 


4 


8 


936 


192 


233 


258 


253 


222 


232 


+ 15.6 


- 0.4 


























New England 


13 


16 


25 


15,315 


3,140 


3,884 


4,327 


3,964 


3,296 


4,024 


+ 5.0 


+ 3.6 


Middle Atlantic 


14 


24 


87 


72,390 


14,665 


18,266 


20,009 


19,450 


16,004 


18,836 


+ 9.1 


+ 3.1 


East North Central 


12 


16 


66 


36 , 944 


7,903 


9,322 


9,966 


9,753 


7,766 


8,953 


- 1.7 


- 4.0 


West North Central 


12 


33 


28 


23,629 


5,175 


5,986 


6,268 


6,200 


5,087 


5,698 


- 1.7 


- 4.8 


South Atlantic 


13 


25 


27 


21,898 


5,103 


5,523 


5,701 


5,571 


4,996 


5,382 


- 2.1 


- 2.6 


East South Central 


8 


12 


5 


2,773 


586 


658 


756 


773 


731 


796 


+24.7 


+21.0 


West South Central 


10 


12 


13 


6,010 


1,301 


1,512 


1,526 


1,671 


1,497 


1,570 


+ 15.1 


+ 3.8 


Mountain 


18 


19 


12 


3,483 


776 


879 


914 


914 


800 


875 


+ 3.1 


- 0.5 


Pacific 


28 


62 


46 


62,338 


13,921 


16,614 


16,217 


15,586 


13,784 


15 , 542 


- 1.0 


- 6.5 


+ Increase - Decrease 




" Percentages in this column represent 1935 sales of 


establishments reporting for 1937-38 survey divided by total sales lor 1935, by classifications. 




States Comprising Geographic Divisions: 


NEW ENGLAND - (Conn., Maine, Mass., N. H., R. 


I, Vt.) SOUTH ATLANTIC - (Del, D. C, Fla, Ga, Md, N. C, S. C, Va, W. Va.) 


MIDDLE ATLANTIC - (N. J., N. Y., Pa.) 


EAST SOUTH CENTRAL - (Ala, Ky, Miss, Tenn.) 


EAST NORTH CENTRAL - (III, Ind, Mich, Ohic 


, Wis.) WEST SOUTH CENTRAL - (Ark, La, Okla, Tex.) 


WEST NORTH CENTRAL - (Iowa, Kans, Minn, 


Mo, Nebr, MOUNTAIN - (Ariz, Colo, Idaho, Mont, Nev, N. Mex, Utah, Wyo.) 


N. D 


ak, S. 


Dak. i 




PA 


CIFIC - (C 


»lif, Oreg, 


Wash.) 













CENSUS SURVEY OF BUSINESS: 1937-38 



Page 7 

WHOI.ESALE DISTRIBUTION 



TOBACCO AND ITS PRODUCTS (except leaf) 

TABLE 2.- SALES, PAY ROLL AND STOCKS: 1937, 1936 AND 1935 
FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 



DIVISION 



Size Of 

Sample 

Compared 

With 1935 

Census 



Estab 

L1SH- 

MENTS 

55 



NET* 

Sales 



No. Of 
Estab- 
lish- 
ments 

Includ- 
ed In 

1937-38 
Survey 



Net Sales 
(add ooo ) 



1937 



1936 



1935 



Pay Roll* 

Udd 000) 



1937 



1935 



Stocks On Hand 
End Of Year 

Udd ooo) 



1936 



Percent Increase 
1935 to 1937 



Net 
Sales 



Pay 
Roll 



Stocks 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



UNITED STATES 

Service wholesalers 
Cash-and-carry wholesalers 
Wagon distributors 

Geographic Divisions 

New England 
Middle Atlantic 
Bast North Central 
West North Central 
South Atlantic 
Sast South Central 
West South Central 
Mountain 
Pacific 



309 |244,780 



1224,645 



274 
27 



240 , 608 

3,236 

936 



15,315 

72,390 

36,944 

23,629 

21,898 

2,773 

6,010 

3,483 

62,338 



$202,569 



220,880 

3,037 

728 



13,380 

62,744 

33,729 

21,007 

21,999 

2,350 

5,499 

3,339 

60,598 



199,083 

2,872 

614 



11,394 

57,223 

29,811 

17,582 

19,760 

2,219 

4,732 

2,820 

57,028 



$6,545 



6,468 
64 

13 



379 

2,513 

1,065 

491 

737 

82 

118 

99 

1,061 



$5,648 



5,584 
53 

11 



338 
,140 
896 
369 
609 
69 
105 
81 
,041 



$11,867 



11,636 

201 

30 



726 

3,158 

1,478 

1,155 

834 

175 

237 

162 

3,942 



$11,419 



11,196 

198 

25 



639 

2,673 

1,324 

983 

878 

150 

228 

136 

4,408 



$9,882 



9,742 
125 

15 



553 

2,303 

1,272 

784 

818 

138 

225 

119 

3,670 



20.8 



15.9 



20.9 
12.7 
52.4 



15.8 
20.8 
18.2 



34.4 
26.5 
23". 9 
34.4 
10.8 
25.0 
27.0 
23.5 
9.3 



12.1 
17.4 
18.9 
33.1 
21.0 
18.8 
12.4 
22.2 
1.9 



20.1 



19 
60.8 

100.0 



31.3 
37.1 
16 
47 

2 
26.8 

5.3 
36.1 

7.4 






• Percentages in this column represent 1935 sales ol establishments reporting for 1937-38 survey divided by total sales for 1935, by classifications. 
• • Pay roll not available for year 1936. Pay roll includes compensation of full-time and part-time employees, but not of proprietors and firm members of 
unincorporated businesses. 

States Comprising Geographic Divisions: 



NEW ENGLAND - (Conn., Maine, Mass., N. H., R. l.,Vt) 
MIDDLE ATLANTIC - (N. J., N. Y., Pa.) 
EAST NORTH CENTRAL - (111., Ind., Mich., Ohio, Wis.) 
WEST NORTH CENTRAL - (Iowa, Kans., Minn., Mo., Nebr., 
N. Dak., S. Dak. ) 



SOUTH ATLANTIC - (Del., 
EAST SOUTH CENTRAL - 
WEST SOUTH CENTRAL - 



D. C, Fla., Ga., Md., N. C, S. C, Va., W. Va. ) 

(Ala., Ky., Miss., Tenn. ) 

(Ark., La., Okla., Tex.) 
MOUNTAIN • (Ariz., Colo., Idaho, Mont., Nev., N. Mex., Utah, Wyo.) 
PACIFIC - (Calif., Oreg., Wash.) 



Page 8 

CENSUS SURVEY OF BUSINESS: 1937-38 



TOBACCO AND ITS PRODUCTS (except leaf) 

TABLE 3.-SIZE OF SAMPLE 

1937 SURVEY COMPARED WITH 1935 CENSUS 

ESTABLISHMENTS, SALES AND PAY ROLL BY GEOGRAPHIC DIVISIONS 



WHOLESALE DISTRIBUTION 



• 



DIVISION 



Number Of 
Establishments 



1935 

Census 



Included In 
1937-38 
Survey 



Number 



Sample 



Net Sales 

(add 000 ) 



1935 
Census 



1935 Sales Of 
Those Included 
In 1937-38 Survey 



Amount 



Sample 



Pay Roll* 

(a<M 000) 



1935 

Census 



1935 Pay Roll Of 
Those Included 
In 193738 Survey 



Amount 



% 
Sample 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



UNITED STATES 

Service wholesalers 
Cash-and-carry wholesalers 
Wagon distributors 

Geographic Divisions 

New England 
Middle Atlantic 
East North Central 
West North Central 
South Atlantic 
East South Central 
West South Central 
Mountain 
Pacific 



2,253 



1,921 
142 
190 



198 
643 
551 
231 
202 

63 
131 

67 
167 



309 



274 
27 



25 
87 
66 
28 
27 
5 
13 
12 
46 



14 



14 

19 

4 



13 
14 
12 
12 
13 
8 
10 
18 
28 



$785,368 



746,841 
19,096 
17,431 



71,812 
234,255 
181,765 
52,705 
78,922 
19,259 
38,422 
14,672 
91,556 



$202,569 



199,083 

2,872 

614 



11,394 

57,223 

29,811 

17,582 

19,760 

2,219 

4,732 

2,820 

57,028 



26 



27 

15 

4 



16 
24 
16 
33 
25 
12 
12 
19 
62 



$21,547 



20,778 
328 
441 



1,966 
6,350 
5,091 
1,411 
2,589 

638 
1,018 

531 
1,953 



$5,648 



5,584 
53 
11 



338 

2,140 

896 

369 

609 

69 

105 

81 

1,041 



26 



27 

16 

2 



Pay roll includes compensation of full-time and part-time employees, but not of proprietors and firm members of unincorporated businesses. 

States Comprising Geographic Divisions: 



NEW ENGLAND - (Conn., Maine, Mass., N. H, R. I., Vt. ) 
MIDDLE ATLANTIC - (N. J., N. Y., Pa.) 
EAST NORTH CENTRAL - (111., Ind„ Mich., Ohio, Wis.) 
WEST NORTH CENTRAL - (Iowa, Kans., Minn., Mo., Nebr., 
N. Dak., S. Dak.) 



SOUTH ATLANTIC - (Del., D. C, Fla., Ga., Md., N. C, S. C, Va., W.Va.) 

EAST SOUTH CENTRAL - (Ala., Ky., Miss., Tenn.) 

WEST SOUTH CENTRAL - (Ark., La., Okla., Tex.) 

MOUNTAIN - (Ariz., Colo., Idaho, Mont., Nev., N. Mex., Utah, Wyo.) 

PACIFIC - (Calif., Oreg., Wash.) 



c 



UNITED STATES DEPARTMENT OF COMMERCE 

Daniel C. Roper, Secretary 

BUREAU OF THE CENSUS 

William L. Austin. Director 



CENSUS SURVEY OF BUSINESS: 1937-38 



WHOLESALE DISTRIBUTION 



WINE AND LIQUOR TRADE 



*»«*"* 




DECEMBER, 1938 



*i 



I 









■ 






CENSUS SURVEY OF BUSINESS: 1937-38 
Wholesale Distribution 

WINE AND LIQUOR TRADE 

This is one of a series of final reports presenting the findings of the Census Survey of 
Business for the year 1937 and the first half of 1938. Contained herein are dollar sales of identical 
establishments — 220 service and limited-function wholesalers and 46 manufacturers' sales branches — 
specializing in the sale of wines and liquors for the years 1935, 1936, 1937 and the first half of 
1938; pay roll for the years 1935 and 1937, and the value of stocks on hand at the end of the years 
1935, 1936 and 1937. Sales for the year 1937 and the first half of 1938 are shown by quarters. As 
added features, changes in size of business, 1935 to 1937, are shown; establishments are classified 
according to their usual terms of sale; and sales for the year 1937 are analyzed to show cash and 
credit business separately. 

This Survey, unlike regular Censuses of Business, is not intended to present a complete pic- 
ture of the wholesale wine and liquor trade, but rather to provide a reliable indicator of trends since 
the last Census. It was conducted by mail from lists made up only of establishments included in the 
1935 Census, all new ones since 1935 being omitted. Those with sales less than $25,000 for the year 
1935 W3re likewise omitted as they account for but a negligible portion of the total business. Report- 
ing was purely on a voluntary basis, with only one reminder follow up; hence, not all wholesalers con- 
tacted submitted returns. This report is further limited to those establishments engaged primarily in 
selling wines and liquors at wholesale during the year 1935 and which still operate in a similar manner. 

Three Regular Censuses 

Three regular Censuses of Business have been taken covering the years 1929, 1933 and 1935, 
respectively. Below is a comparison of the number of service and limited-function wholesalers and manu- 
facturers' sales branches engaged primarily in the wholesaling of wines and liquors together with their 
sales. No data are given for 1929, a prohibition year. 



Service and Limited- 
Function Wholesalers 



Manufacturers' Sales 
Branches 



Number of 
establishments 



Net sales 



Number of 
establishments 



Net sales 



1929 Census 
1933 Census 
1935 Census 



Prohibition Era 
765 $ 87,369,000 
1,480 417,252,000 



Prohibition Era 
25 $ 17,251,000 
116 197,537,000 



Percent change 
1933 to 1935 



+93.5 



+377.6 



+364.0 



+1045.1 



Identical establishments in this Survey: 



1935 
1936 
1937 



220 
220 
220 



$ 97,847,000 
135,833,000 
155,817,000 



46 
46 
46 



$111,691,000 
132,395,000 
138,844,000 



Percent cnange, identical establishments 

1935 to 1936 + 38.8 

1936 to 1937 + 14.7 
1935 to 1937 +59.2 



+ 18.5 
+ 4.9 
+ 24.3 



$590,000,000 For Service And Limited-Function Wholesalers 



If the 59.2 percent increase in sales, 1937 over 1935, as found in this Survey is considered 
representative for the trade, the total business of all service and limited-function wholesalers en- 
gaged primarily in selling wines and liquors approximated $590,000,000 in 1937. Likewise, if the 24.3 



Page 2 



percent increase is representative, the total for manufacturers* sales branches exceeded $245,000,000. 

Sales Increase More Than Pay Roll or Stocks 

It is interesting to note that between 1935 and 1937 sales increased more than pay roll or 
stocks on hand at the end of the year. For service and limited -function wholesalers, sales rose 59.2 
percent as compared with a 49.2 percent rise in pay roll and a 32.9 percent increase in stocks. Sales 
of manufacturers' sales branches were up 24.3 percent as compared with a 14.1 percent rise in pay roll. 
Inventories of manufacturers ' sales branches show a decrease of 32.2 percent. 









% increase, 




1937 


1935 


1937 over 
1935 


220 Service and limited- 








function wholesalers 








Net sales 


$155,817,000 


$ 97,847,000 


+ 59.2 


Pay roll 


$ 9,001,000 


$ 6,031,000 


+ 49.2 


Stocks, end of year 


$ 19,087,000 


$ 14,359,000 


+ 32.9 


46 Manufacturers' sales branches 








Net sales 


$138,844,000 


$111,691,000 


+ 24.3 


Pay roll 


$ 3,836,000 


$ 3,361,000 


+ 14.2 


Stocks, end of year 


$ 3,680,000 


$ 5,428,000 


- 32.2 


Quarterly Sales, 1937 and First Half of 1938 









A measure of the short-term trend in the wine and liquor trade is given in terms of quarterly 
sales of the 220 service and limited-function wholesalers and 46 manufacturers' sales branches for the 
year 1937 and the first half of 1938. Quarterly sales by geographic divisions are shown in Table 1. 
The summary for the United States follows: 



I 



220 Service and Limited- 
Function Wholesalers 



46 Manufacturers' 
Sales Branches 



Period 







Net sales 


io change from 
preceding quarter 


Net sales 


* 

prec 


change from 
eding quarter 


1st Qr. 
2nd Qr. 
3rd Qr. 
4th Qr. 


1937 
1937 
1937 
1937 


$35,563,000 
36,089,000 
34,706,000 
49,459,000 


+ 1.5 
- 3.8 
+ 42.5 


$29,691,000 
31,060,000 
31,473,000 
46,620,000 




+ 4.6 
+ 1.3 

+ 48.1 


1st Qr. 

2nd Qr. 


1938 
1938 


31,718,000 
36,205,000 


- 35.9 
+ 14.1 


24,085,000 
27,839,000 




- 48.3 
+ 15.6 



"]j change, first 
half 1937 to 
first half 1938 



- 5.2 



- 14.5 



Percent Sample 

The 220 service and limited-function wholesalers included herein constitute a 15 percent sam- 
ple of the number and 23 percent of sales in 1935. Likewise, the 46 manufacturers' sales branches repre- 
sented 40 percent of the number and accounted for 57 percent of the total business for all branches dur- 
ing 1935. 



Table 3, attached, measures the size of the sample included in this Survey in terms of the 
1935 Census. In this table, the number of those included, together with their 1935 sales and pay roll, 
is compared by geographic divisions with the totals in 1935. For convenience in using the information, 
the percent sample, establishments and sales, is reproduced in Tables 1 and 2. 

Table 2 presents comparable information by geographic divisions as to sales and stocks for 
the years 1935, 1936 and 1937, and on pay roll for the years 1935 and 1937. 



£* 



Page 3 



SIZE OF ESTABLISHMENT 



Of the 220 service and limited -function wholesalers included in this Survey, 195 are classi- 
fied as wholesale merchants, 22 as importers, and 3 as limited-function wholesalers. The 195 wholesale 
merchants are arranged according to their 1935 size in Table A, below, where their number and sales are 
compared by size classification with all wholesale merchants for that year. As might be expected, a 
greater percentage of the large establishments than small ones reported for this Survey. Eighteen of 
the 69 (26$) in the $l,000,000-and-over bracket and 35 of the 124 (28$) in the $500,000 - $999,999 
group are included as compared with only 57 of the 568 (10$) in the under $100,000 bracket. 

TABLE A. -SAMPLE BY SIZE OF ESTABLISHMENT- WHOLESALE MERCHANTS ONLY 



Size of establishment 


Number of 
establishments 


Net sales-1935 


Percent sample 


(Net sales in 1935) 


1935 
Census 


1937-38 
Survey 


1935 
Census 


1937-38 
Survey 


Estab- 
lishments 


Net 
sales 


Total 


1,340 
69 
124 
166 
413 
568 


195 
18 
35 
33 
52 
57 


$370,158,000 


$78,459,000 

29,436,000 

24,310,000 

12,856,000 

8,542,000 

3,315,000 


15 

26 
28 
20 
13 
10 


21 


$1,000,000 and over 
$500,000 - $999,999 
$300,000 - $499,999 
$100,000 - $299,999 
Under $100,000 


122,378,000 
85,359,000 
64,001,000 
73,812,000 
24,608,000 


24 
28 
20 

12 
14 



Increases by Size, 1937 over 1935 

Percentage increases in sales, pay roll and stocks, 1937 over 1935, of the 195 wholesale mer- 
chants are shown in Table B, below, by size of establishment. The smaller establishments, those under 
$500,000 show the largest gains in sales but their pay roll and inventories were also up more than 
average. Pay roll of 57 merchants in the under $100,000 bracket increased 61.5 percent as compared with 
a gain of 53.6 percent in sales and a 56.0 percent rise in inventories. Similarly, pay roll of the 52 
establishments in the $100,000 - $299,999 group increased 71.6 percent as compared with 59.0 percent for 
sales and 56.8 percent for inventories. On the other hand, sales of 18 "$1, 000, 000-and -over" establish- 
ments rose 57.2 percent as compared with 44.1 percent for pay roll and 20.7 percent for inventories. 






TABLE B. -INCREASES IN SALES, PAY ROLL AND STOCKS, 1937 OVER 1935, 
BY SIZE OF ESTABLISHMENT 



Size of establishment 


Number of 
establishments 


Percent increase, 1937 


over 1935 


(Net sales in 1935) 


Sales 


Pay roll 


Stocks 


Total 


195 


53.4 


47.9 


48.4 


$1,000,000 and over 


18 


57.2 


44.1 


20.7 


$500,000 - $999,999 


35 


48.5 


47.4 


59.1 


$300,000 - $499,999 


33 


57.7 


58.9 


60.1 


$100,000 - $299,999 


52 


59.0 


71.6 


56.8 


Under $100,000 


57 


53.6 


61.5 


56.0 



Changes from one size bracket to another, 1937 to 1935, are shown in Table C for the 195 
wholesale merchants. In keeping with the general increase in sales, the trend was from the lower to 
the upper groups. For example, 31 establishments were in the $l,000,000-and-over group in 1937 as com- 
pared with only 18 in 1935. On the other hand, 57 houses had sales of less than $100,000 in 1935 as 
compared with only 41 in 1937. A total of 74 establishments moved up in size bracket, while only 7 
dropped to lower groups. Ten establishments moved up as much as two size brackets. 



TABLE C.--NUMBER OF SERVICE WHOLESALERS BY SIZE CLASSIFICATION; 1935 AND 1937 



") 



Size of establishment 


Total 
estab- 


$1,000,000 

and 

over 


$500,000 

to 
$999,999 


$300,000 

to 
$499,999 


$100,000 

to 
$299,999 


Under 
$100,000 


(based on net sales) 


lishments 


in 


in 


in 


in 


in 




1935 


1937 


1937 


1937 


1937 


1937 


Total establishments, 1937 


195 


31 


50 


23 


50 


41 


$1,000,000 and over 


18 


18 










$500,000 - $999,999 
$300,000 - $499,999 


35 


11 


22 


1 


1 




33 


2 


20 


10 




1 


$100,000 - $299,999 


52 




8 


12 


28 


4 


Under $100,000 


57 








21 


36 



Page 4 



TERMS OF SALE 



The Bureau of the Census collected information in this Survey for the first time on the usual 
terms of sale. Each cooperating establishment was asked to report its usual credit period and its cus- 
tomary cash discount rate, if any. In addition, sales for the year 1937 were to be analyzed to show 
"spot cash" business, credit sales 10 days or less, and credit of more than 10 days. Houses granting 
discounts for early payment of time sales were asked to report the percentage of their credit sales dis- 
counted in 1937. The results of these inquiries are presented in Tables D and E. Not all houses were 
able to supply the information, hence, the number of establishments in these tables is less than the 
total number included in this Survey. 



Credit Period And Rate Of Discount 

Table D classifies 204 service and limited-function wholesalers and 38 manufacturers' sales 
branches according to usual credit periods and cash discount rates. It should be noted that these are 
the usual terms for the houses, and that either or both the credit period and the rate of discount may 
vary with the commodity sold and with the customer. Also the classification as given here represents 
the policy of the house from which practice may vary. Thirty days, reported by 69 service and limited- 
function wholesalers and by 20 manufacturers' sales branches, is the most frequent credit period for 
the trade. Other periods are 10 days, 15 days, and a combination of periods varying with the customer. 

Billing net is the common practice although 12 service wholesalers and 17 sales branches 
allow a cash discount of 1 percent and 12 service wholesalers grant 2 percent. 



TABLE D. --ESTABLISHMENTS CLASSIFIED ACCORDING TO USUAL TERMS OF SALE 



Usual Credit Period 



Total 
number of 

estab- 
lishments 



Usual discount rate 



Net* 



l£ 



2$ 



Combina- 
tion of 
rates** 



MANUFACTURERS' SALES BRANCHES 



* 



Discount 

granted, 

rate not 

stated 



SERVICE AND LIMITED-FUNCTION 


WHOLESALERS 






Total establishments 


204 


145 


l/l2 


2/ 12 




4 


31 


Spot cash (credit not 
















usually granted) 


10 


10 


— 


— 




— 


— 


10 days 


23 


20 


1 


— 




— 


2 


15 days 


10 


10 


— 


— 




— 


— 


30 days 


69 


46 


6 


6 




2 


9 


Other periods (60 to 90 days) 


22 


17 


— 


— 




1 


4 


Combination of periods*** 


35 


27 


— 


2 




-_ 


6 


Periods not stated 


35 


15 


5 


4 




1 


10 



Total establishments 


38 


12 


3/ 17 


__ 


4 


5 


30 days 


20 


11 


4 


— 


— 


5 


Combination of periods*** 


5 


1 


— 


— 


4 


— 


Periods not stated 


13 


— 


13 


— 


— 


— 



Cash discount not usually granted. 

Rate differs with commodity and customer; no single rate predominating. 
*** Period varies with commodity or customer. 

1/ All 12 establishments reported their discount period as 10 days. 
2/ 11 establishments reported their discount period as 10 days; 1 as 60 days. 
3/ 13 establishments reported their discount period as 10 days; 4 as 15 days. 



i 



Page 5 



Cash vs. Credit Sales 



The cash credit division of 1937 sales is given in Table E. Credit business predominates 
heavily as 88.2 percent of the sales of service and limited-function wholesalers and all of the busi- 
ness of manufacturers' sales branches included in this Survey are on a credit basis. Approximately 
two-thirds (66.C-;£) of the sales of service and limited-function wholesalers and more than four-fifths 
(81.7$) of the business of manufacturers' sales branches is on credit for more than 10 days. 

TABLE E. -CASH-CREDIT ANALYSIS OF SALES 
( Sales expressed in thousands of dollars ) 



Usual Credit Period 



Total 



Net 



H 



Zfo 



Combina- 
tion of 
rates 



Discount 

granted, 

rate not 

stated 



SERVICE AND LIMITED 


-FUNCTION WHOLESALERS 






Number of establishments 


204 


144 


12 


12 


4 


32 


Net sales (1937) 


$147,102 
17,346 


$93,055 


$17,042 
373 


$5,461 
808 


$3,216 
337 


$28,328 


Spot cash 


11,597 


4,231 


Credit 10 days or less 


32,671 


13,749 


8,893 


2,397 


331 


7,301 


Credit more than 10 days 


97,085 


67,709 


7,776 


2,256 


2,548 


16,796 


Percent of net sales 














Spot cash 


11.8 


12.5 


2.2 


14.8 


10.5 


14.9 


Credit 10 days or less 


22.2 


14.8 


52.2 


43.9 


10.3 


25.8 


Credit more than 10 days 


66.0 


72.7 


45.6 


41.3 


79.2 


59.3 






Percent or credit sales d 


iscounted 




Percent of all credit sales 




, 








discounted (v.'eighted average) 






31.0 


49.0 


15.7 


28.1 



MANUFACTURERS' SALES BRANCHES 



Number of establishments 
Net sales (1937) 


38 

$132,045 

24,205 

107,840 

18.3 
81.7 


12 

#44,597 

44,597 

100.0 


17 

$26,999 


~ 


4 

$17,335 

17,335 

100.0 


5 
$43,114 


Credit 10 days or less 
Credit more than 10 days 
Percent of net sales 
Credit 10 days or less 
Credit more than 10 days 


24,205 
2,794 

89.7 
10.3 


43,114 
100.0 


Percent of all credit sales 
discounted (weighted average) 




Percent c 


f credit 
59.4 


sales d. 


iscounted 
50.6 


15.0 



Credit Sales Discounted 

The extent to which customers take advantage of cash discounts where allowed is also shown 
in Table E. Service and limited-function wholesalers selling on a 1 percent basis granted discounts 
on 31.0 percent of their 1937 credit sales and those granting 2 percent allowed discounts on 49.0 per- 
cent of their 1937 business. Similarly, manufacturers' sales branches selling on a 1 percent basis dis- 
counted 59.4 percent of their business. 

- - 



The current Census Survey of Business includes retail as well as wholesale trade and is nation- 
wide in scope. It is being conducted by the Bureau of the Census with funds provided by the Works Prog- 
ress Administration. The project is under the direction of Fred A. Gosnell, Chief Statistician, who was 
also in charge of previous Eusiness Censuses. Wholesale trade reports are prepared under the immediate 
supervision of John Albright, assisted by James D. Lenig. 



Page 6 



CENSUS SURVEY OF BUSINESS: 1937-38 


WHOLESALE DISTRIBUTION 


WINE AND LIQUOR TRADE 






TABLE l.-NET SALES BY QUARTERS: 1937 AND FIRST HALF OF 1938 






FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 








Size Of 
















Sample 


No. Of 




Net Sales By Quarters 




Percent 


DIVISION 


Compared 

With 1935 

Census 


Estab- 
ush- 

MENTS 

Includ- 
ed In 

1937-38 
Survey 


Net 
Sales 
Year 
1937 

(•dd OOO) 


(add ooo) 






Chance 


1937 


1938 


1st Qr. 

1937 

To 

1ST QR. 
1938 


2ND QR 

1937 

To 

2nd Qr. 
1938 


Estab- 
lish- 
ments 

% 


Net« 
Sales 

% 


1st Qr. 

Jan. 1 
Mar. 31 


2nd Qr. 

April 1 
June 30 


3rd Qr. 

July 1 
Sept. 30 


4th Qr. 

Oct 1 
Dec. 31 


1ST Qr. 

Jan. 1 
Mar. 31 


2nd Qr. 

April 1 
June 30 


SERVICE AND LIMITED-FUNCTION WHOLESALERS 


UNITED STATES 
New England 


15 


23 


220 


$155,817 


$35,563 


$36,089 


$34, 706 


$49,459 


$31 , 718 


$36,205 


-10.8 


+ 0.3 


18 


22 


24 


15,050 


3,306 


3,682 


3,603 


4,459 


3,219 


3,738 


- 2.6 


♦ 1.5 


Middle Atlantic 


19 


29 


50 


67,831 


14,480 


15,077 


15,174 


23,100 


13,286 


15,550 


- S.2 


+ 3.1 


East North Central 


15 


17 


57 


22,338 


5,390 


5,347 


5,078 


6,523 


4,356 


5,031 


-19.3 


- 5.9 


West North Central 


18 


26 


17 


12,499 


3,104 


2,836 


2,553 


4,006 


2,660 


3,003 


-14.3 


+ 5.9 


South Atlantic 


11 


16 


13 


7,870 


2,137 


1,862 


1,473 


2,398 


1,804 


1,696 


-15.6 


- 8.9 


East South Central 
West South Central 


14 

8 


22 
23 


7 
6 


~j 11,051 


2,739 


2,626 


2,265 


3,431 


2,390 


2,304 


-12.4 


-12.3 


Mountain 


19 


43 


9 


4,787 


1,045 


1,164 


1,168 


1,410 


980 


1,131 


- 6.2 


- 2.8 


Pacific 


12 


24 


37 


14,391 


3,372 


3,495 


3,392 


4,132 


3,023 


3,752 


-10.4 


+ 7.4 


MANUFACTURERS' SALES BRANCHES (with stock*) 


UNITED STATES 
Middle Atlantic 


40 


57 


46 


138,844 


29,691 


31,060 


31,473 


46,620 


24,085 


27,839 


-18.9 


-10.4 


1/ 


V 


8 


46,808 


8,970 


10,144 


10,640 


17,054 


7,296 


8,234 


-18.7 


-18.8 


East North Central 






11 


35,858 


8,261 


8,491 


8,529 


10,571 


5,697 


7,329 


-31.0 


-13.7 


Mountain 


— 


— 


5 


2,320 


529 


572 


521 


698 


339 


470 


-26.5 


-17.8 


Pacific 


— 


— 


13 


23,781 


5,925 


5,029 


5,487 


7,340 


4,564 


5,204 


-23.0 


+ 3.5 


Other Divisions 


~ 


— 


9 


30,083 


6,006 


6,824 


6,296 


10,957 


6,139 


6,602 


+ 2.2 


- 3.3 


+ Increase • Decrease 






* Percentages in this column represent 1935 sales of establishments included in this survey, divided by total 1935 sal 


es of each 


classification. 


1 / 1935 figures not available for calculating percent sample by geographic divisions. 






States Comprising Geographic Divisions: 






NEW ENCLAND -Conn., Maine, Mass., N. H., R. /., Vl. EAST SOUTH CENTRAL -Ala.. 


Ky., Miss., Tenn. 


MIDDLE ATLANT1C-N. J., N. Y., Pa. 












WEST 


SOUTH CENTRAL~Ark., 


La., Ohio., 


r«. 







EAST NORTH CENTRAL-IIL, Ind., Mich., Ohio, Wit. MOUNTAIN— Ariz.. Colo. Idaho. Mont, Nev., N. Mex., Utah, Wyo 

WEST NORTH CENTRAL -Iowa, Kans., Minn., Mo., Nebr., N. Dak., S. Dak. PACIFIC— Calif., Oreg.. Wash. 

SOUTH ATLANTIC-Del, D. C, Fla., Co., Md., N. C, S. C, Va., W. Va. 



^ 



ge 7 








CENSUS SURVEY OF BUSINESS: 1937-38 






WHOLESALE DISTRIBUTION 






WINE AND LIQUOR TRADE 












TABLE 2.- SALES, PAY ROLL AND STOCKS: 1937, 1936 AND 1935 










FOR IDENTICAL ESTABLISHMENTS, BY GEOGRAPHIC DIVISIONS 










Size Of 

Sample 

Compared 

With 1935 


No. Of 
Estab- 


Net Sales 


Pay Roll** 


Stocks On Hand 


Percent Increase 






lish- 






End Of Year 


1935 to 1937 




DIVISION 


Census 


ments 
Includ- 
ed In 
1937-38 
Survey 


Udd 000) 


Udd 000) 




Udd 000) 








ESTAB- 
LISH. 

MENTS 

% 


Net- 
Sales 

% 


1937 


1936 


1935 


1937 


1935 


1937 


1936 


1935 


Net 
Sales 


Pay 

Roll 


STOCKS 




SERVICE AND LIMITED-FUNCTION WHOLESALERS 




UNITED 5TATE3 
Sew England 


15 


23 


220 


B.55,817 


$135,833 


$ 97,847 


$9,001 


$6,031 


$19,087 


$17,243 


$14,359 


59.2 


49.2 


32.9 




18 


22 


24 


15,050 


12,674 


9,915 


1,008 


711 


2,008 


1,580 


1,296 


51.8 


41.8 


54.9 




Middle Atlantic 


19 


29 


50 


67,831 


55,641 


35,974 


3,893 


2,316 


8,100 


7,129 


6,085 


88.6 


68.1 


33.1 




East North Central 


15 


17 


57 


22,338 


20 , 280 


13,648 


1,100 


853 


2,542 


2,313 


2,438 


63.7 


29.0 


4.3 




West North Central 


18 


26 


Vi 


12,499 


11,816 


8,451 


628 


480 


1,845 


2,194 


1,389 


47.9 


30.8 


32.8 




South Atlantic 


11 


16 


13 


7,870 


7,978 


6,339 


597 


401 


887 


755 


565 


24.2 


48.9 


57.0 




3ast 3outh Central 
West South Central 


14 
8 


22 
23 


7 
6 


111, 051 


8,977 


8,269 


673 


439 


1,429 


1,156 


855 


33.6 


53.3 


67.1 




Mountain 


19 


43 


9 


4,787 


4,598 


3,289 


217 


144 


470 


449 


271 


45.5 


50.7 


73.4 




Pacific 


12 


24 


3? 


14,391 


13,869 


11,962 


885 


687 


1,806 


1,667 


1,460 


20.3 


28.8 


23.7 




MANUFACTURERS' SALES BRANCHES (with stocks) 




DOTTED STATES 
Middle Atlantic 


40 


57 


46 


138,844 


132,395 


111,691 


3,836 


3,361 


3,680 


5,955 


5,428 


24.3 


14.i 


-32.2 




1, 


1 


8 


46,808 


46,175 


45,909 


1,553 


1,343 


1,685 


3,550 


2,317 


2.0 


15.6 


-27.3 




East North Central 


— 


— 


11 


35,852 


35,006 


25,584 


784 


569 


775 


883 


1,278 


40.1 


37.8 


-39.4 




Mountain 


— 


— 


5 


2,320 


2,378 


2,533 


60 


71 


113 


118 


149 


- 6.4 


-15.5 


-24.2 




Pacific 


— 


— 


13 


23,781 


22,570 


16,616 


618 


660 


801 


1,046 


1,390 


43.1 


- 6.4 


-42.4 




Other divisions 


— 


~ 


9 


30,083 


26,266 


21,049 


821 


718 


306 


358 


294 


42.9 


14.3 


4.1 




Decrease 












* Percentages in this column 


represent 1935 sales of establishments included in this survey, divided by tot 


i\ 1935 sal 


es of each 


classification. 




* * Pay roll not available lor 


year 1936. Pay roll includes compensation of both full time and part-time employees, but 


not of proprietors and firm members of 




unincorporated businesses. 












\j 1935 figures not available 


tor calculating percent sample by geographic divisions. 

States Comprising Geographic Divisions. 










NEW ENCLAND-Conn., Main 


; Mas,. N. H., R. /., Vl. EAST SOUTI 


1 CENTRAL 


-Ala., K»., 


diss., Tcnn. 




MIDDLE ATLANTIC-N. J., N 


Y., Pa. WEST SOUT 


H CENTRAL-Ark, La., 


Okla., Tex. 




EAST NORTH CENTRAL. IIL 


Ind.. Mich., Ohio. Wit. MOUNTAIN- 


■Ariz., Colo.. 


Idaho. Mont 


, Nee. N. Ma, Utah, Wuo 




WEST NORTH CENTRAL-loi 


va, Kan.., Minn., Mo., Nebr., N. Dak, S. Dak. PACIFIC— Cal 


11., Oreg.. Wash. 






SOUTH ATLANTlC-DtL, D. I 


:., Fla., 


Ca., Md 


, N. C. S 


C. Va., W 


Va. 





















Page 8 

CENSUS SURVEY OF BUSINESS: 1937-38 



WINE AND LIQUOR TRADE 

TABLE 3.-S1ZE OF SAMPLE 

1937 SURVEY COMPARED WITH 1935 CENSUS 

ESTABLISHMENTS, SALES AND PAY ROLL BY GEOGRAPHIC DIVISIONS 



WHOLESALE DISTRIBUTION 



DIVISION 



Number Of 
Establishments 



1935 

Census 



Included in 
1937-38 
Survey 



Number 



Sample 



Net Sales 

l add 000 ) 



1935 

Census 



1935 Sales Of 
Those Included 
In 1937-38 Survey 



Amount 



Sample 



Pay Roll* 

(add 000) 



1935 

Census 



1935 Pay Roll Of 
Those Included 
In 1937-38 Survey 



Amount 



% 
Sample 



SERVICE AND LIMITED-FUNCTION WHOLESALERS 



UNITED STATES 

New England 
Middle Atlantic 
East North Central 
West North Central 
South Atlantic 
East South Central 
West South Central 
Mountain 
Pacific 



1,480 



133 

270 

378 

96 

115 

50 

78 

47 

313 



220 



24 
50 
57 
17 

13 
7 
6 
9 

37 



15 



18 
19 
15 
18 
11 
14 
8 
19 
12 



$417,252 



46,100 
123,026 
80,741 
32,746 
40,805 
17,393 
19,447 
7,650 
49,344 



$ 97,847 



9,915 

35,974 

13,648 

8,451 

6,339 

3,787 

4,482 

3,289 

11,962 



23 



22 
29 
17 
26 
16 
22 
23 
43 
24 



$ 25,303 



3,021 

8,876 

4,278 

1,752 

2,222 

698 

986 

431 

3,039 



$ 6,031 



711 
2,316 
853 
480 
401 
256 
183 
144 
687 



24 



24 
26 
20 
27 
18 
37 
19 
33 
23 



MANUFACTURERS' SALES BRANCHES (with stocks) 



UNITED STATES 

Middle Atlantic 

East North Central 

Mountain 

Pacific 

Other Divisions 



1/ 116 



46 



8 
11 

5 
13 

9 



40 



1/197,537 



111,691 



57 



45,909 
25,584 
2,533 
16,616 
21,049 



1/ 6,554 



3,360 



1,342 

569 

71 

660 

718 



51 



I 



* Pay roll includes compensation of full-time and part-time employees, but not of proprietors and firm members of unincorporated businesses. 
1 / 1935 Census figures not available by geographic divisions. 

States Comprising Geographic Divisions: 



NEW ENCLAND-Conn., Maine, Mass., N. H., R. I., VI. 

MIDDLE ATLANTIC-N. ]., N. Y., Pa. 

EAST NORTH CENTRAL-llL, Ind., Mich., Ohio, Wis. 

WEST NORTH CENTRAL-lowa, Kant., Minn., Mo., Nebr., N. Dak., S. Dak. 

SOUTH ATLANTIC-Del., D. C, Fia., Ca., Md., N. C, S. C, Va., W. Va. 



EAST SOUTH CENTRAL-Ala., Ky., Miss., Tenn. 

WEST SOUTH CENTRAL-Ark., La., OHa., Tex. 

MOUNTAIN— Ariz.. Colo., Idaho. Mont.. Nev.. N. Mex., Utah, Wyo. 

PACIFIC— CalU., Oreg., Wash. 









t 



« 



u.:>. bur. oi the Census. 
Wholesale distribution. 



Census 

T 

343065 

UN3b 

1937-38